As widely predicted, the Chancellor announced a temporary cut to Stamp Duty today.
Rishi Sunak told the House of Commons that he wants people to feel confident to buy, sell, renovate and build homes.
To help achieve this, he announced a cut to the 0% Stamp Duty threshold from £124,999 to £500,000.
The measure takes effect immediately and will run until 31 March 2021.
Sunak said the average Stamp Duty bill will fall by £4,000 and that nearly nine out of 10 people buying a main home this year will not pay any Stamp Duty.
Mark Arnold, CEO of Kensington Mortgages, said: “If the housing market is working properly, that has a massive impact on the rest of the economy – so this potentially is a big boost. A stamp duty holiday is a huge market change and this has never happened before. First-time buyers, second steppers and older homeowners will all benefit. Even before lockdown, there was a clear stagnation in housing activity on those higher up the property ladder.
“Extending the threshold to £500k frees up larger properties for growing families and enables the next generation of homebuyers to step onto or even up the ladder. Buyers will make a significant tax saving and this acts as a large incentive to keep all parts of the housing cycle moving in some of the most crucial summer months.”