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Budget 2024: Stamp Duty Changes - Good News for First-Time Buyers, Tougher for Second Homeowners
- Daniel Campbell
- Oct 30, 2024
- 2 min read
In the Autumn Budget 2024, Chancellor Rachel Reeves announced significant changes
impacting the housing market, especially for second home buyers. These updates keep first-time buyers in mind while introducing new costs for those purchasing additional properties.
Key Updates in Stamp Duty
First-Time Buyers Remain Unaffected: The Chancellor reaffirmed that no new stamp duty charges would affect first-time buyers purchasing properties up to £250,000. This continuation of existing relief aims to support new entrants in the housing market and keep homeownership affordable for young and first-time buyers.
Increased Stamp Duty for Second Homes: For those buying a second home, stamp duty rates will see a notable increase starting October 31, 2024. The surcharge on additional homes in England and Northern Ireland will now rise from 3% to 5% on properties valued between £40,000 and £250,000. This rate hike is expected to curb speculative buying, aligning with the government’s goal of increasing housing availability for owner-occupiers.
Here’s a breakdown of the updated stamp duty for second-home tiers:
£40,000 - £250,000: 5%
£250,001 - £925,000: 8%
£925,001 - £1.5 million: 13%
Over £1.5 million: 15%
What Does This Mean?
The hike in stamp duty for second-home buyers will likely reduce the demand for secondary properties, potentially benefiting primary homeowners and renters. However, second-home buyers may now face additional upfront costs averaging around £2,500 on mid-range properties.
Stay tuned for more updates on how the Autumn Budget 2024 impacts the property market and your finances!
For advice on how these changes could affect your mortgage plans, reach out to us at More Financial and see how we can help navigate your financial future.
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