Tue 30 Oct 2018 View all news articles

Stamp duty removed on shared ownership

Stamp duty has been abolished for all first-time buyers of shared ownership homes with a market value of up to £500,000. Those who bought a shared ownership property within the past year will still benefit, as the policy is being applied retrospective from the 2017 Budget. 

First-time buyers already do not have to pay stamp duty on properties worth up to £300,000, so the relief would be on anything above this. 

Stamp duty rates in England and Wales: 

Homes worth up to £125,000: 0%
£125,001 to £250,000: 2% 
£250,001 to £925,000: 5% 
£925,001 to £1.5m: 10% 
£1.5m+: 12% 

There is also a 3% surcharge for people who own more than one property, while first-time buyers do not pay any stamp duty on homes below £300,000.

This could encourage more first-time buyers to buy a home under shared ownership, helping keep prices stable across the sector. 

The Help to Buy scheme  is also being tweaked. The scheme provides a Government-backed loan to people who want to buy a new-build home but cannot afford the required deposit. 

It was announced today the scheme is being extended from 2021 until 2023, and will only be available to first-time buyers between these two years. 

Budget documents said housing market conditions have improved since 2013, with a growing number of low-deposit mortgages available to help first-time buyers.

Source: i News


Calculate Your Stamp Duty

If you have any questions or queries about stamp duty, please contact your local branch. We are always happy to help!

As leading Wirral estate agents and lettings agents we have plenty to talk about and like to give our opinions on a few things too! Read about what we have to say, our latest news and industry news.