Threshold on stamp duty exemption raised slightly

The government has recently confirmed that the threshold for exemption of stamp duty on the purchase of property is to rise by £50,000 on a temporary twelve month basis. At present the exemption applies to properties to the value of £125,000 but for the next year will apply to properties up to the value of £175,000.

The government hopes that the measure will help first time buyers to enjoy increased affordability, as they will be able to save up to £1750 on the purchase of a property, which could prove a help to those looking for high deposit levels and having to pay substantial arrangement fees. This could in turn help to revive the housing market.

However, not everyone will benefit from the move according to some officials. Many have expressed concern that consumers looking to buy in London will not benefit because the average price of a home there is way over the maximum threshold and therefore they will still have to pay stamp duty.

The Tory Party has pledged that if it gets back into power it will make changes to stamp duty regulations and will be making stamp duty exempt on all properties up to the value of £250,000.