According to a recent estate agency survey, revised changes to the UK Stamp Duty Land Tax, as outlined by the Government in December, have already had a positive impact on the housing market.

In December 2014, the Government announced it had cut Stamp Duty Land Tax for the majority of homebuyers, with the aim of making payments fairer. The Government estimates the tax reductions will help 98% of those who are liable to pay for the duty.

In a national survey conducted among its members, Relocation Agent Network found 66% of respondents said that the tax cuts have had a positive impact on the market.

When asked to explain the ‘positive impact’, the majority of survey respondents (68%) indicated the number of buyers entering the market had increased by up to 10%.

Interestingly, aside from the Stamp Duty changes, respondents said that ‘consumer confidence’ was another positive trend impacting the market (63%).

The national network of independent estate agents also asked its members whether the revised Stamp Duty changes has led to price increases for properties that were traditionally around the £250,000 threshold. Indeed, 75% said that they had. When asked to specify on the price increase, a resounding 91% reported up to a 10% rise.

Chris Hope from Dawsons, a member of Relocation Agent Network in Swansea, said: “As Relocation Agent Network reports a rise in the number of buyers entering the UK housing market, this survey brings good news for sellers.

“If you have a property to sell, contact us today. We’re Relocation Agent Network’s appointed Local Expert for Swansea which means we have access to out of town buyers moving into the area.”

As with any government statement, there were a few surprises in George Osborne’s Autumn Statement, and not least was the reformation of stamp duty as we know it. In what was his last statement before the general election, Osborne announced that there is to be a complete overhaul of the system.

Here the UK’s leading independent mortgage broker, Mortgage Advice Bureau, explores the changes in stamp duty and how it will affect buyers across the nation.

Introduced in 2003, Stamp Duty Land Tax (SDLT) is a transfer tax charged when purchasing a property. The old way of calculating stamp duty was by using what was known as a ‘slab system’. It would begin when a homebuyer purchases a property valued over £125,000. Any properties bought for up to £250,000 would then be charged at 1%.

The stamp duty charges then rose to 3% for properties worth more than £250,000 and up to £500,000, and continued to rise to 4% up to £1million, 5% up to £2million and 7% over £2million.

“The problem with this system was that, if a buyer paid just one penny over the £250,000 threshold, they would be charged triple the amount of stamp duty than if they were a penny under,” said Oliver Adair from Mortgage Advice Bureau.

So what’s changed? Under the new system, the amount of stamp duty owed will work in a tiered way, much like income tax. For example, if you bought a property worth £130,000, you would pay £100 stamp duty as you are only paying 2% on the £5,000 over the stamp duty free threshold of £125,000.

If you bought a property worth £255,000, you would still pay the 2% stamp duty on the £250,000 as it is still in the 2% bandwidth of £125,001-£250,000. This purchase would equate to £2,500 in stamp duty charges.

Oliver added, “The new rules will undoubtedly affect all buyers. In fact, 98% of homebuyers could potentially save thousands of pounds when purchasing a property. However, homes that cost over approximately £937,000 may see their stamp duty increase.”

The new thresholds mean that when purchasing the average family home of £275,000, a buyer will save £4,500. The changes affect the whole of the UK until April, which is when the Scottish parliament unveil their own tax reforms.

“With any introduction or change in the housing industry, it is advised that you speak to professional independent mortgage adviser to discuss how you will be affected,” concluded Oliver.

For further information please contact Oliver on 07917 146430 or email olivera@mab.org.uk. Alternatively, please visit www.dawsonsproperty.co.uk