The UK’s largest property auctioneer, Auction House – trading as Auction House Coventry and Warwickshire, estimates last week’s stamp duty reduction will save 200,000 buyers from paying the tax each year.
The move was announced by Chancellor Kwasi Kwarteng in his September ‘mini budget’ and could save property buyers thousands of pounds each.
Manager and auctioneer Sally Smith said: ‘This is great news for people moving house, as the price at which the zero stamp duty rate applies has been doubled from £125,000 to £250,000, which is a potential saving of £2,500.
“This is even better news for first-time buyers, who previously paid no stamp duty on the first £300,000 of their home – but will now be exempt from tax on the first £425,000 instead. Additionally, the value of the property they can claim repairs on has increased from £500,000 to £600,000 – meaning they could save up to £11,250.
“Even second home owners, investors and buyers will also benefit. While they will still have to pay an additional 3% stamp duty on top of the rates for each band, doubling the zero rate to a quarter of a million pounds will certainly help.
“So not only do auction house buyers have the benefit of the speed and certainty of the auction process – taking a few weeks instead of six months on average for a home purchased via private treaty – but now there’s yet another reason to buy a property at one of our live or online events.
“As for our sellers, of course, knowing that hundreds of thousands of buyers have been waived stamp duty and incentivized to buy now, means they should enter their property in our next auction at The Village Hotel, Canley, Coventry CV4 9GZ on Thursday 3rdrd November at 6:30 p.m.