Stamp Duty cut being planned for Autumn budget – claim

Rumours have been circulating over the weekend that Chancellor Jeremy Hunt has decided to cut Stamp Duty.

The Times newspaper made the claim, citing sources within HM Treasury. Plans have been drawn up to increase the threshold at which people start paying Stamp Duty from £250,000 to £300,000.

Despite costing Government coffers some £3 billion a year by 2028-29, this would mean that close to 50% of everyone buying a home in England would pay no Stamp Duty, saving up to £2,500.

The move is designed to help the embattled Prime Minister who, it is claimed, sees this ‘giveaway’ as a potential vote winner for the looming election, which most experts agree will be in November this year.

It is also reported that the Spring budget last month was expected to include this Stamp Duty cut but stubbornly high inflation kiboshed Hunt’s plans. Now that inflationary pressures are subsiding, Treasury officials are more relaxed about it being featured in the Autumn budget in September, the exact date of which has yet to be set.

Help

Tomer Aboody, director of property lender MT Finance, says: “With prices increasing month-on-month, we are seeing the strength in demand and confidence within buyers who are taking advantage of steading interest rates and lower inflation.

“But with sales volumes considerably lower than last year, higher demand versus lower supply will always push prices up.

“Sellers need to be encouraged to move in order to increase availability of stock in the market, and some movement in Stamp Duty rates would help.”