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.
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