Conveyancing Partner at leading Sheffield City Region law firm Taylor Emmet, Neil Riley has provided guidance and advice in response to today’s (23 September 2022) stamp duty cut announced by Chancellor Kwasi Kwarteng.

The cut raises the threshold of how much a property has to cost before stamp duty is paid to £250,000. First-time buyers will also be exempt from stamp duty when purchasing properties worth up to £425,000, an increase from the previous £300,000 limit.

Neil said: “Whilst the property market has been fairly resilient over recent months, this reduction in stamp duty as well as the broader tax cutting measures announced by the Government could help to offset some of the headwinds the economy is facing in the coming months and avoid any slowdown in the property market.

“With the cost-of-living crisis and higher interest rates affecting mortgage costs, the proposed reduction in stamp duty will be welcome news to many buyers and will help to reduce the cost of moving home and keep people and the property market moving over the coming months.

“Stamp duty can be a barrier to property transactions and people moving house so these measures may encourage more people to move, especially when one of the biggest problems at the moment is the lack of property on the market.”

The latest announcement follows the stamp duty holiday, which was introduced by former Chancellor Rishi Sunak to help the property market recover from the effects of the pandemic.

Neil added: “The previous stamp duty holiday introduced in July 2020 saw a significant increase in property transactions, putting a strain on all aspects of the property industry from estate agents, banks, building societies, surveyors, conveyancers and even removal companies. The conveyancing team at Taylor Emmet experienced a record month of instructions as a result.

“We have also seen property prices increase significantly during the incentive period, often offsetting the stamp duty saving and creating a false property market during the stamp duty holiday period.

“This permanent change is very welcome to reduce the tax burden of moving home and avoids some of the short-term problems experienced as a result of previous incentive schemes.”

Please contact Taylor Emmet’s property conveyancing team at info@tayloremmet.co.uk for any queries or advice.