Are you looking to buy a property in Dartford? Then the UK government’s new mini budget has good news for you. Read on to find out more.
The mini budget announced by the UK government on Friday September 23 aims to tackle issues including high energy costs and inflation – and much of its efforts are focussed on the housing market.
In Dartford, as across the UK, house prices have been rising – and that means home buyers have had to pay higher rates of stamp duty. The stamp duty holiday that was introduced during the COVID-19 pandemic provided some temporary relief and stimulated the housing market, but now the government has made some permanent changes that will benefit home buyers.
What is stamp duty?
Stamp duty is a tax you pay when you buy a property in the UK. The new mini budget has significantly cut stamp duty for homes bought in England and Ireland.
What will the stamp duty cut mean for me?
Whereas you previously had to pay stamp duty on anything above the first £125,000 of the property’s price, there is now no stamp duty due on the first £250,000 of a property’s price. For properties between £250,000 and £925,000, stamp duty is now charged at 5%. That means that if you buy a property for £500,000, you’ll pay no stamp duty on the first £250,000 and will be charged 5% stamp duty (£12,500) on the remaining £250,000.
The Chancellor of the Exchequer, Kwasi Kwarteng, said that the changes will mean 200,000 home buyers don’t have to pay stamp duty – and the standard buyer in England will save £2,500.
You can read more about the stamp duty changes here.
What about first time buyers?
For first time buyers, the nil-rate stamp duty threshold has been raised from £300,000 to £425,000. In addition, the threshold for stamp duty relief has been raised from £500,000 to £625,000.
First-time buyers can also benefit from the Lifetime ISA, a savings product designed to support younger people buying their first home. It enables you to put up to £4,000 a year into your account until you reach the age of 50 – and you’ll receive a 25% bonus from the government on your savings.
What if I’m buying an additional property?
Be aware that the changes apply to buying a property that will be your main residence – the rate is higher for “additional dwellings” such as second homes and buy-to-let properties.
Will the energy costs of my new home change?
The war in Ukraine has had a devastating effect on household energy prices, but recent steps taken by the government mean that heating your new home will not be as daunting as it previously seemed. The government says its Energy Price Guarantee will save the typical household £1,000 a year on their energy bills, while its Energy Bills Support Scheme provides a £400 non-repayable discount to eligible households to help with their energy bills over the winter of 2022 to 2023. You can read more about the government’s support for household energy costs here.
What could I save in total?
If you combine the stamp duty savings and the energy savings, the government says a
typical family buying a semi-detached property will save around £4,200 in total – that’s made up of a £2,500 saving on stamp duty and an energy bill saving of £1,150, plus a £560 saving on tax based on a combined income of £50,000.
What’s the housing market like in Dartford?
While the pandemic stamp duty holiday helped to stimulate the housing market in Dartford, it has remained buoyant since the stamp duty holiday ended in September 2021, partly because some people made savings during the lockdown period. Demand for properties in the area is another factor. Land Registry figures from June 2022 showed that the average property price in the UK was £292,118, while in Dartford it was £362,035. Dartford is an attractive place to live, not least because of its local amenities, proximity to London and great transport links. If you’d like to browse properties for sale in Dartford, click here.
Looking for estate agents in Dartford?
If you’re looking to buy a property in Dartford, it’s important to find an estate agent with a deep knowledge of the local market to support you throughout the buying process. That’s where we can help. Our support includes a free no-obligation valuation if you have an existing home to sell and regular notifications to make sure you’re at the front of the queue when your ideal property comes onto the market with us. Contact us here to discuss your requirements.
Contains public sector information licensed under the Open Government Licence v3.0.