A cut to stamp duty in England and Northern Ireland will benefit “the vast majority of homebuyers” to the tune of £2,500, according to a leading property agency.

Until today, stamp duty was payable on any property worth more than £125,000 on completion but Chancellor Kwasi Kwarteng has now raised that threshold to £250,000.

For someone buying a property at £270,000 for example, their stamp duty bill will be cut from £3,500 to £1,000.

Anyone buying a second home will also save this money, although they will still have to pay the additional 3 per cent levy for second homes.

First time buyers will see their exemption level raised from £300,000 to £425,000 and pay no stamp duty up that level, thereby saving them a maximum of £6,250.

Stamp duty rates under the previous system 

£0-£125k - 0% 

£125k-£250k - 2% 

£250k-£925k - 5% 

£925k-£1.5m - 10% 

£1.5m+ - 12% 

Stamp duty rates under the new system 

£0-£125k - 0% 

£250k-£925k - 5% 

£925k-£1.5m - 10% 

£1.5m+ - 12%

“We have had several exchanges that have held off this week as people wait to see what the Chancellor would announce,” says Andrew Simmonds, a director at Parker’s Estate Agents in North Somerset and Country Property in South Gloucestershire.

“This measure is great news for anyone looking to move home in the next few months as it will save them up to £2,500, money that could be used to make the house move easier.

“Essentially the middle £125,000-£250,000 bracket has been eliminated. In the south of England in particular, there is very little property that falls below £250,000 in any case, thereby benefitting the vast majority of the people in the market.”

Mr. Simmonds, a chartered surveyor who has worked in the residential property sector for more than 20 years, adds: “The government believes that cutting Stamp Duty will support economic growth by encouraging more people to move home or jump on the property ladder and while I don’t believe this measure will do that on its own, a saving of £2,500 will certainly ease the process.” 

Information on Parker’s can be found at www.parkers-estate-agents.com