Uk households living in houses worth £500,000 being handed 'immediate' £5,105

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MORTGAGE EXPERTS HAVE SAID, THAT UNDER THE NEW LABOUR PARTY GOVERNMENT STAMP DUTY SHAKE-UP, HOUSEHOLDS SHOULD BE OFFERING £499,999 ON HOMES ABOVE £500K. 13:03, 19 Jan 2025 First-time buyers


looking to get onto the property ladder could save thousands of pounds by buying homes just under £500,000, experts suggest. Mortgage experts have said, that under the new Labour Party


government stamp duty shake-up, households should be offering £499,999 on homes above £500k. Under stamp duty changes, the maximum property price eligible for first-time buyer relief will be


reduced from £625,000 to £500,000. It means a first-time buyer in London purchasing an average-priced home of £502,098 would face a Stamp Duty bill of £15,104. But by offering £499,999 on a


home over the half-a-million-pound threshold, buyers can avoid the higher tax rate that kicks in at £500,000. John Fraser-Tucker, head of mortgages at Mojo Mortgages, said: "This


significant saving is due to how Stamp Duty is calculated in brackets. READ MORE MET OFFICE WARNS TWO-WORD WEATHER PHENOMENON WILL HIT UK FROM SUNDAY “By staying just under the £500,000


threshold with an offer of £499,999, buyers avoid the higher rate that kicks in above this price point. It's a simple yet effective strategy that can make a real difference in


today's challenging market.” Article continues below Mr Fraser-Tucker said: "In contrast to London, where the average property price is significantly higher, many other regions


will not incur any Stamp Duty based on the average price for first-time buyers. This makes it easier for buyers in those areas to enter the market.” This approach can reduce their Stamp Duty


bill to £9,999, resulting in immediate savings of £5,105. While London buyers face the biggest impact, the effects of these changes vary significantly across regions. Fraser-Tucker notes,


“In contrast to London, where the average property price is significantly higher, many other regions will not incur any Stamp Duty based on the average price for first-time buyers. This


makes it easier for buyers in those areas to enter the market. While London presents unique challenges with higher costs, it also offers opportunities for those who act quickly.”