An increased bill for a second home, while first time buyers hit by threshold change

Commenting on stamp duty changes in today’s Budget, Toby Price, head of stamp taxes at Deloitte, said:

 “Those looking to buy a second home are now faced with an increased bill. For a house purchase of £292,924 – the average price of a house in England – stamp duty cost is now £16,792, up from £10,933 today, an increase of £5,859.

“However, with the stamp duty holiday ending at the end of March, prospective buyers for all homes – including those taking their first steps onto the property ladder – face a closing window of opportunity. Those hoping to benefit from the existing, more favourable, thresholds have just over 150 days to make their move.

“This is likely to fuel a surge in transactions in the short term, particularly in London and the South East where the impact on affordability is most pronounced.

“Those acquiring their first home will receive a bill of £6,250 on a property of £425,000 – compared to no charge now. Existing homeowners purchasing a house to move in to for £295,000 will see their fee rise from £2,250 to £4,750 – an additional £2,500.”

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Deloitte has a range of spokespeople available to comment on today’s Autumn Budget. They can be reached on 0207 303 5054 or one of the following numbers:

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• Anthony Massey – energy tax (07774 337581)

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