The Stamp Duty Land Tax relief led more people in the UK to buy homes for the first time in February, as purchases up to £300,000 are now tax-free.
If you are looking to buy a house in Wales, for example, you may need to calculate stamp duty fees differently, as the Welsh government imposed new rules as well.
Stamp Duty Program
First-time buyers who plan to acquire homes worth more than £300,000 and up to £500,000 would need to pay a five per cent stamp duty. Standard rates will apply if the property’s value exceeds £500,000, although there is a cap of 12.5 per cent.
The new stamp duty rules likewise caused sales in February to increase the share of first-time transactions, 29 per cent from 27 per cent in January, according to the National Association of Estate Agents’ report. More people will likely rush to buy homes, as prices fell in March for the second consecutive month.
The price growth in the previous month fell to 2.1 per cent from 2.2 per cent year over year. This represented the lowest growth rate since June 2013, which likewise indicates that last month seemed to be a good time for a home purchase.
However, most people would still find it difficult to buy a house due to the higher cost of living in the country. If you own a house in Northern Ireland, the region recorded a 7.9 per cent year-over-year increase in home prices during the first quarter of 2018, whilst prices in London fell 1 per cent in the same period. The nationwide growth rate reached 16 per cent.
The new stamp duty rules in most parts of the UK serve as good news for first-time buyers, although high prices will continue to be a problem for many people. How much are you willing to spend on a home purchase and on stamp duty fees.