Every Coventry property for sale on the Allsopp & Allsopp website is now cheaper to buy thanks to the Chancellor's reform of the stamp duty system. Rather than rigid brackets that penalise properties just over the old thresholds, the new levy will work like income tax, allowing everyone a £125,000 tax-free property allowance before any tax is applied.
Buyers will pay 2% on part of the property worth between £125,000 and £250,000, then 5% on the part of the property worth between £250,001 and £925,000. Although not quite a mansion tax, more expensive homes will be taxed at a higher rate, with a 10% tax on the portion between £925,001 and £1.5 million, and 12% applied to everything above that.
Carl Allsopp, the co-founder of the Coventry estate agent, says that the Chancellor has effectively created a permanent flash sale on property: "There was a lot of speculation over what might happen to the property market in the run-up to May 2015's general election and it appears that George Osborne has gone for a vote-winning strategy that has instantly put thousands of pounds in the pocket of the country's home buyers. The new stamp duty rules mean that property for sale in Coventry is now thousands of pounds cheaper to buy, with a purchaser completing on a property worth £275,000 saving £4,500 on stamp duty tax."
Carl also adds that the news is well timed for sellers or those thinking of putting their home on the market soon: "There's no getting away from the fact that moving home is an expensive business so anything that helps reduce the cost will encourage buying activity in the market. Sellers set to benefit the most will be those whose homes have been valued at just over £250,000, which would have tipped them into the 3% stamp duty tax band under the old threshold system. Now it will be much cheaper to buy a property priced at just over £250,000, with savings in the region of £3,500-£4,000. It's likewise for properties that are priced at just above £500,000, which formerly attracted a tax of 4% on the whole of the sale price."
"As leading Coventry estate agents we are bracing ourselves for a flurry of property enquiries from buyers who realise it's much cheaper to buy a property now, especially when you combine the new stamp duty system with low mortgage rates. We can attractively market properties in the region of £255,000 to £275,000 knowing there will be a massive financial saving for buyers rather than a hefty tax penalty. We'd be delighted to value any property in the city or the Coventry suburbs, free and without obligation."
To find out how much you can save under the stamp duty reform, contact Allsopp & Allsopp today.
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