“Movers are more likely to benefit from the Stamp Duty holiday than first time buyers”.

Original picture: Woburn Sands area

It’s no secret that we are in a pandemic. The Government has been updating us quite frequently regarding new procedures and initiatives to help the economy and those who are going through a really hard time.

One of the initiatives that was announced was the Stamp Duty holiday. This was a bid to boost Britains housing market.

What this means is that someone who decided to sell their home and buy a new one would no longer have to pay stamp duty on the new property providing it cost them £500,000 or less.

This initiative doesn’t do much for first time buyers as they haven’t had to pay stamp duty on the first £300,000 of their first property for some time, however, previously they would of had to pay 5% on the excess amount between £300,001 – £500,000. 

As soon as this initiative was announced, the housing market picked up massively. The boost most definitely took place!

Home owners used this opportunity to save thousands of pounds. 

To give you an idea of how great this initiative is, check out this example:

Someone sells their house for £350,000, moves and buys a house for £400,000 as they want to upsize and have enough equity to do so. In 2019 and even up to 8 July 2020, they would of had to pay £10,000 in stamp duty. 

Fast forward to now, this person would pay £0 stamp duty hence the urgency in the housing market.

Many people are trying to move, upsize, downsize and the rest of it before the end of March 2021. April 2021 is the beginning of a new financial year and looking at the deficit the country is currently in due to furlough, bail out funds and the rest of it, we are all going to pay with the potential increase of taxes and the return of stamp duty!

We also have another issue on our hands. Due to the property demand being high, many are prepared to pay a lot more for certain properties in the way of a bidding war…

This is a discussion for next week. 

The 2018 Budget – Things you need to know

Stamp Duty – Travel – Income Taxes – Brexit

Reading Time: 4 mins

What does this mean for First-Time Buyers?

Nothing much has changed here.

However, for First-time buyers purchasing a property using the Help to Buy Shared Ownership scheme, an anomaly was fixed. Previously, buyers of a shared-ownership property would be taxed on the full market value of the home (up to £500,000) rather than only the share they were buying. If the full market value of the shared-ownership property was more than £500,000 the buyer would not have been eligible for any stamp duty reduction at all.

So, a buyer paying £125,000 for a 25 per cent share of a new home valued at £500,000 would still have had to pay £10,000 stamp duty – equivalent to five per cent of the sales price above £300,000.

Now, First Time buyers purchasing a property using the Help to Buy Shared Ownership scheme will only be eligible to pay stamp duty, if any at all, for the share they are buying. So, a buyer paying £125,000 for a 25 per cent share of a new home valued at £500,000 will not pay stamp duty.

Other stamp duty rates remain the same.



Up to £300,000


£300,000.01 – £500,000


What does this mean for people on £50K per annum salaries?

Previously, if you earned £46,350 per annum and above, you’d fall in to the higher rate tax payer threshold – you’d be taxed 40%

This has now been increased to £50,000 per annum – April 2019

What does this mean for the cost of travel?

No major changes have been made here.

Costs generally remain the same.

However there has been an introduction of a new rail card for 26-30 year olds providing 1/3 off most rail travel. This will be made available nationally by the end of the year.

Brexit? What happens now?

This is something that I will not dabble too deep in. After all, our Schools, Higher Education facilities and Government have barely wrapped their heads around this.

However, from the budget, it is clear that a lot of money is being pumped in to various regions to help supplement the immediate defects of suggesting and eventually leaving the European Union, however this is a grey area as we haven’t even established 1. Whether we’ll have a no deal Brexit 2. Whether we’ll have a Brexit deal 3. Whether there’ll be another referendum resulting in no Brexit at all.

The point I want to make here is the importance of understanding the political process and what your vote means. Keep your eyes peeled, ears open and remain attentive along the Brexit journey so that you know how the progress or lack of it, will affect you.

Read Newspapers, watch/listen to the news, question time and have a little fun with the internet -Ultimately, stay informed.

Stamp Duty: The Perks of being a First Time Buyer

Before you commit to buying your first home, stop, think and calculate!

Reading Time: 2mins 

The flat you can buy today on your current budget, equates to a house in a few years of patient saving.

As soon as you use your First Time Buyer rights, that’s it, they’re gone. Any property you buy thereafter will fall victim to *higher Stamp Duty rates.

After the Autumn 2017 Budget, it was announced that First Time buyers will not have to pay stamp duty for the first £300,000 of their purchase and £5,000 less on a purchase between £300,000 and £500,000.

The image below shows a representative example of how Stamp duty is calculated for a £500,000 property:

Screen Shot 2018-10-06 at 15.32.13

Any property over £500,000 is not eligible for Stamp Duty relief. So a £600,000 property would be subject to a hefty £20,000 stamp duty bill.

If you decide to buy a second home or a Buy-to-Let property, you will also have to pay an extra 3% stamp duty on top of the current rates for each band.

Below is a table for *standard Stamp Duty bands:

Minimum property purchase price

Maximum property purchase price

Stamp Duty rate (only applies only to the part of the property price falling within each band)











£1.5 million


Over £1.5 million


Patience is indeed key here.

Moving slightly away from stamp duty, as a first-time buyer there are also preferential Mortgage rates and products for you. Combining these deals with your discounted stamp duty, you are making a whopping saving as a first time buyer and shouldn’t let anxiety or this competitive nature that many millennial’s have distract you from your goal and ultimate saving opportunity.

Think about longevity, don’t live in the now.

Why buy an “okay” flat now for £150,000 (that you only intend to live in for 3 years) and waste your stamp duty discount, when you can buy a £300,000 property that you are much happier with in 2 years time a live a foreseeable future in?

Stop, think and calculate.