Chancellor Kwasi Kwarteng recently confirmed a permanent stamp duty cut, with zero tax to be paid on properties valued up to £250,000.
The government just announced recently a stamp duty cut as part of its September mini-budget.
The results of this historical move are:
- Makes property purchases more affordable for you
- Invites more investments in the housing market
- Helps you escape the stamp duty filing process
But that’s just one side of the news.
We’ll help you understand the whole picture to make your investment process simpler.
Read the article till the end to get a better view of the investment market situation for the coming months.
What Is Stamp Duty and What Changes Are Implemented?
Stamp duty is a standard tax you must pay while purchasing property or land. Wherever you live in the UK, you need to pay money to the governing authorities based on your region:
- England and Northern Ireland: Stamp Duty Land Tax (SDLT)
- Scotland: Land and Buildings Transaction Tax (LBTT)
- Wales: Land Transaction Tax (LTT)
Until recently, you were only liable to pay stamp duty (or land transaction tax) when you bought a home or purchased property or land worth more than £125,000.
But to spark growth in the housing market and promote new or existing investors, Chancellor Kwasi Kwarteng has announced cuts to stamp duty.
That means if you are investing in a property or land worth £250,000, you don’t need to pay hefty stamp duty.
Here’s a table to better understand the revised stamp duty rates.
| Property value | Stamp duty rate before 23 September 2022 | New stamp duty rate |
| Up to £125,000 | 0% | 0% |
| £125,001 to £250,000 | 2% | 0% |
| £250,001 to £925,000 | 5% | 5% |
| £925,001 to £1.5 million | 10% | 10% |
| Above £1.5 million | 12% | 12% |
But for a first-time investor, the stamp duty limit has been increased to £425,000.
Look at the table to better understand new investors’ revised stamp duty rates.
| Property value | Stamp duty rate for the first-time buyers before 23 September 2022 | New stamp duty rate for a first-time buyer |
| Up to £300,000 | 0% | 0% |
| £300,001 to £425,000 | 5% | 0% |
| £425,001 to £500,000 | 5% | 5% |
| £500,001 to £625,000 | 10% | 5% |
| Over £625,001 | 12% | 12% |
Being a first-time buyer, you can save a maximum of £6,250 on purchasing your next home, while an existing investor can save up to £2,500.
It’s great for you to invest in the UK property market in the coming times. But the time is just limited to the next 5 weeks.
Here’s how.
Why Development Property Investment Is the Right Choice Now?
The bad news for you is that the interest rates on mortgage borrowings are rising because the Bank of England (BoE) is using the base interest rate to control the economy, which is soaring due to high inflation (above 11%).
The BoE will review the interest rates again on 3 November, and the rates will likely go up again, making the mortgage more expensive.
So, you only have 5 weeks to make a buying decision and avail of the lowest property investment rates and mortgage.
Consult a leading property investment company in the UK to get the best rates and property investment deals to complete the process within a limited timeframe.
Choose the Right Property Investment Consultants
A property investment consultant can help you minimise the hassles of your property search and deliver the best land or property investment based on your budget.
You can save time, money, and effort once you contact the best property investment consultants.
It can also ensure you complete the transaction within the limited 5 weeks time before the interest rates are hiked and you are asked to pay a higher mortgage rate from your financial institution.
That’s where Pluxa Property can help you get the best deals in the UK.
We have many available properties, and you can benefit from the relaxed stamp duty. You choose your preferable property based on your budget and requirements and our team of professionals can help you simplify your decision-making.
But you must act fast to avoid the next interest rate hike, anticipated on 3 November, and get the best deals within the limited time.
So, associate with the leading property deal sourcing and packaging company that stands out and ensures that you invest in properties offering a high yield.
With years of experience helping many investors and landlords solve their property management issues, we can assist you with the same.
But this time, even quicker.
Being the no.1 company for property investment in the UK, we offer the best property deals in R2SA, BRRR, Buy2Let, R2R HMO, and Buy2SA.
Make a wise decision and achieve financial success for your property investment.
FAQs
Q. Are the stamp duty changes great for first-time investors?
As the experts say, the changes will ease cost pressures on first-time or existing buyers in the short term. But they have also warned it will cause house prices to spike, so it’s important to make the investment decision as soon as possible. Consult the leading property investors, to get the best deals for property or land investment.
Q. How can investors in the process of buying a property benefit from the discount?
Investors in the process of buying a property should benefit from the stamp duty cuts as it comes into effect on 23 September. You can contact your solicitor or a professional investment consulting and sourcing company to ensure you get the discount.
Q. What are the stamp duty rules in Scotland and Wales?
Similar stamp duty is paid in Scotland and Wales, but the rules and thresholds differ. In Scotland, Land and Buildings Transaction Tax is not applicable on the first £145,000 of a property’s value. In Wales, the Land Transaction Tax is applicable on properties above the value of £180,000.
Peter Juhasz is the founder of Pluxa Property, the biggest property investment company in UK and Group CEO of AIP Capital Group and a property investment expert with over a decade of experience in the UK market.
He built a successful property company using innovative cashflow strategies like Serviced Accommodation and HMOs, scaling to 200 units in four years.
Peter leads a team specializing in property and business acquisitions across various sectors. A former co-host of “Cashflow With Property,” he shares his expertise in real estate investing and business scaling.
He is committed to continuous learning and helping SME owners and investors maximize their returns, driven by his passion for empowering others to achieve their financial goals.
To learn how Pluxa Property can help you in UK property investment, contact our experts.
