Seal deals to avoid stamp duty, house hunters told - Mortgages - News - Moneyfacts

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Seal deals to avoid stamp duty, house hunters told

Seal deals to avoid stamp duty, house hunters told

Category: Mortgages

Updated: 04/09/2009
First Published: 04/09/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Would-be home buyers have been advised to wrap up their deals as soon as possible, with the stamp duty holiday set to expire at the end of the year.

Properties worth between £125,000 and £175,000 have been exempt from stamp duty since September last year as part of the Government's financial stimulus, which was implemented to kick start the flagging UK economy.

"The stamp duty holiday has been a great support in stimulating the housing market, and has significantly reduced costs of house purchases for houses up to £175,000 in value," commented Nici Audhlam-Gardiner, director of Abbey Mortgages.

However, this is set to end from 2010, when home buyers looking for property in this price range will once again face a tax of one per cent – anywhere between £1,250 and £1,750.

Based on sales data from the previous two quarters of the year, it is estimated that approximately 35,000 would-be buyers will be in the market for a home worth between £125,000 and £175,000 during the period from 30 September and 31 December.

Collectively, these buyers could face a collective tax bill of some £53.7 million, analysis by Abbey Mortgages has revealed.

As such, house hunters have been advised to wrap up deals for property as soon as possible. With the average purchase taking around three months, mortgage applications should ideally be completed by the end of September.

"With a saving of up to £1,750 at stake for those people who have been considering buying a property, this impending deadline is an added incentive to move fast," added Audhlam-Gardiner.

"First time buyers have been hit hard by the costs of climbing on to the ladder and for these people this is a golden opportunity to make a big saving."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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