A recent report in The Times newspaper revealed that Chancellor Jeremy Hunt is considering a reduction in stamp duty in early autumn. Here are the key points from the report:

  • The proposal involves raising the threshold for paying stamp duty from £250,000 to £300,000 for homebuyers.
  • This change is estimated to cost approximately £3 billion annually by the end of the decade and could exempt around 50% of homebuyers from paying stamp duty.
  • Currently, stamp duty starts at 5% for properties over £250,000 and increases to 10% for those above £925,000 and 12% for properties valued over £1.5 million.
  • Housing Secretary Michael Gove is also in favor of a stamp duty reduction, particularly to assist first-time buyers.
  • Reports in The Daily Mail and The Financial Times have echoed similar sentiments, with suggestions that the mini-Budget might be announced in September.
  • These reports are believed to be based on information from government insiders.
  • A potential stamp duty cut post-summer could provide a much-needed boost to the Herefordshire housing market. Rightmove has cautioned about a slowdown due to factors like the traditional August lull, the Olympics, and pre-election uncertainties.
  • Hunt has hinted at a forthcoming fiscal event before any potential election, emphasizing the positive impact of reduced taxes, declining inflation, and possible interest rate adjustments on public sentiment favoring the Conservative party.

Source: https://www.estateagenttoday.co.uk/breaking-news/2024/4/stamp-duty-cut-possible-this-autumn--media-reports