Under the current Stamp Duty rules, first-time buyers can claim relief, meaning they pay no Stamp Duty on properties worth up to £425,000 and only 5% on purchases up to £625,000. However, these thresholds are set to reduce to £300,000 and £500,000, respectively, and property experts have called on the Government to retain the current rules to help first-time buyers get on the property ladder.
Landlords and investors pay a 3% stamp duty surcharge when purchasing property. The National Residential Landlords Association (NRLA) has suggested scrapping this higher rate for additional dwellings altogether in the Autumn Budget to stimulate housing market activity and help solve the supply-demand imbalance in the private rental market.
Some in the property industry are also hoping for changes to Stamp Duty bands to more accurately reflect property price inflation in the UK housing market. However, so far, most speculation has surrounded the change in rates for first-time buyers, and there are no credible rumours of the Government addressing these other issues as of yet.
Take a look at the RWinvest Stamp Duty calculator to work out how much you would pay as an investor under current rules.