Unless you’ve been in another country for the last month, you will have heard the great news that George Osborne, the UK chancellor, has reformed the Stamp Duty Land Tax bill which means that 98% of people looking to buy a new home, or sell their current home, are going to find it a bit easier.
The reason for this is that prospective buyers will now potentially be able to save thousands of pounds in Stamp Duty under the new reforms. Are you about to buy a new property, or even in the process of buying one? If so, check out how much money you will be able to save using this handy calculator from the Telegraph.
It’s not just property buyers who are having all the fun though. The obvious knock on effect is that prospective sellers now have a new bargaining chip to sweeten the deal. A home that was maybe a few thousand pounds out of buyers’ budgets all of a sudden may now fall well within budget after the Stamp Duty slash.
Businesses in the property industry are also reaping the benefits of more properties being bought and sold, with estate agents being the obvious winners.
In what was likely a familiar story across the country, one firm in London who had television cameras in their offices on the day of the Autumn report, claimed that their entire staff of 16 would be working until 11pm in order to get through the backlog of calls and enquiries they were receiving in the hours following the Chancellor’s statement.
Another industry benefitting greatly from Osborne’s announcement is removal companies. It goes without saying that if more houses are being sold, there is going to be a greater demand for people to move buyer’s and seller’s belongings.
Mike Gibb of A2Z Removals in Cambridgeshire said:
“It’s been a great boost for us and in the last couple of weeks we’ve been as busy as we have been in the summer months, which are typically when most people choose to move home. As winter approaches people are less inclined to embark on a move, but with the reduction in Stamp Duty it seems people are grasping the opportunity with both hands”.
Along with the controversial government Help to Buy scheme, it seems that the reduction in Stamp Duty is another step to try and bolster the UK housing market and stimulate the economy. Only time will tell if the government has got it right or not.