Stamp duty holiday welcomed by Chestnut Homes

The Government’s plan to freeze stamp duty on homes worth up to £500,000 is a “positive step forward” for the housing market.

Chestnut Homes has welcomed the introduction of a stamp duty holiday until 31^st March 2021 which will save housebuyers up to £15,000 on property purchases. The move was announced by Chancellor Rishi Sunak today as part of a package of measures to get the economy moving following the Covid-19 pandemic.

David Newton, Managing Director of Chestnut Homes, said: “It is encouraging to see the Chancellor providing support for the housing market as it emerges from lockdown and we believe this is a positive step forward which will help home buyers in Lincolnshire move onto or up the property ladder.” Under the existing rules, buyers pay no stamp duty on homes worth up to £125,000. Homes priced above this figure incur a two per cent charge on the value of the property between £125,001 and £250,000, and five per cent on the value between £250,001 and £925,000. First-time buyers currently pay no stamp duty on homes worth up to £300,000.

The change means a buyer who purchases a home for £193,865 – the average house price in Lincolnshire over the past 12 months, according to Rightmove – would avoid paying £1,377 in stamp duty fees.

Mr Newton added: “This announcement is particularly important for second-steppers, the majority of whom will avoid paying stamp duty altogether as a result of the changes. While this is only a temporary measure, it does offer an excellent opportunity for buyers to move up the property ladder at a reduced cost and should also provide a welcome short-term boost to the housing market.”