In recent years, we have all come to be disappointed by the Government and today the government have not failed to disappoint!
The long awaited announcement on Stamp Duty has finally been made. The government has announced that the stamp duty threshold has been increased from £125,000 to £175,000 for a period of one year. This move will save those purchasing at £175,000 the additional 1% cost of the stamp duty tax - £1750.
How great it would have been for the government to have considered the market at the higher levels as well; the distortion caused at the £250,000 purchase price where the tax jumps from 1% to 3%. However, given the current economic situation, the chancellor does not have pockets deep enough to fund change at this level.
We welcome the fact that this additional cost for first time buyers has been removed, albeit temporarily at the lower levels. This allows first time buyers to plow their hard earned savings into the deposit for a mortgage which may help in obtaining a more favorable interest rate.
At last we can all breath a sigh of relief that the uncertainty caused by the delay in making this announcement can finally be laid to rest.
