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What could the general election mean for stamp duty?

  • June 12, 2024
  • 2 min read
What could the general election mean for stamp duty?

As the 2024 general election moves closer, it’s important to keep an eye on the housing policy of the major parties. including on stamp duty At the time of writing, the Conservative party is expected to pledge a permanent scrapping of stamp duty for first-time buyers who buy a property up to £425,000. Labour has yet to make an announcement on its policy on stamp duty.

Stamp duty land tax, or SDLT, is a tax paid by anyone who buys either a property or land in England and Northern Ireland. The amount paid depends on the price of the property. At present, first-time buyers are not expected to pay for any properties costing up to £425,000 and would only need to pay a partial stamp duty for homes up to £625,000.

There is no stamp duty relief in Wales and Scotland as property prices there are lower and first-time buyers pay low or no amount due to how taxes are set in both countries.

Before the mini budget in 2022, the threshold for first-time buyers not having to pay any stamp duty was for properties costing up to £300,000 and up to £500,000 for partial stamp duty. The relief saw that raised and was only supposed to be in place until 2025.

The big challenge for a first-time buyer is needing to pass mortgage affordability test and afford the higher mortgage rates. For many, that means a larger deposit to reduce the amount of income needed to buy. A stamp duty relief could be very helpful here.

A return to the prior rules would see 30% of first-time buyers paying stamp duty once again. This means less money that could go towards either a deposit or other buying costs. Buyers in the south of England would be most affected as prices there are the highest and average deposits are over £60,000.

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