According to economists, changes in stamp duty are poised to increase housing prices. In particular, stamp duty is set to rise for over a third of home buyers in the next five years. This is a surprise change that is likely to improve the housing market.
Most experts anticipate that this redesign in stamp duty will be better for existing owners than it is for buyers, in the middle of the attempt to complete sales of houses worth £2 million and over. It will lead to an increase in prices for properties where the tax will be reduced. New home buyers will be charged 2% on costs between £125,000 and £250,0000, and they will pay 5% on any portion between this threshold and £925,000. Up to £1.5 million they will pay 10%, and anything above it will incur a payment of 12%.
Osborne claims that the changes to the scheme will benefit around 98% of home buyers. His stated aim is to make it easier for people in low and middle-income homes to afford to buy new homes.
Stamp duty will be lower for anyone who is paying less than £937,000, but we can still expect further house prices rising as a result of the change.