Property for sale in Hampshire cheaper to buy thanks to stamp duty reform

The stamp duty restructure, as announced by the Chancellor in the Autumn Statement, has made almost every property in the county cheaper to buy. As Hampshire estate agents we are thrilled that most home movers in our area will save thousands of pounds under George Osborne's latest reform. The overall average price of a home in Hampshire is £264,388, according to property search portal Rightmove, and purchasers of a property around that value will save almost £4,500 pounds in stamp duty fees. Property for sale in Hampshire covers a wide variety of price points, however, and there is a financial saving for everyone buying a home for less than £937,000. Those looking at flats and houses for sale in Hampshire at the £500,000 mark will also enjoy a massive stamp duty cut, saving almost £5,000. While property buyers are set to instantly benefit from a cheaper moving process, sellers will also see an upturn in fortunes. The scrapping of rigid stamp duty brackets, which penalised properties that were just one pound over a threshold, means homes prices at just over £250,000 and £500,000 will be taxed more fairly. For example, a property priced at £275,000 under the old stamp duty system would attract a 3% levy, costing a buyer £8,250 in stamp duty fees. Under the new system, the buyer now pays only £3,750. This reduction makes a wider variety of homes more attractive - and affordable - to buy, and we can confidently market homes at every price point knowing buyers will not be deterred by a hefty tax bill. The new levy will work like income tax, allowing everyone a £125,000 tax-free property allowance before any tax is applied. Buyers will pay 2% on part of the property worth between £125,000 and £250,000, then 5% on the part of the property worth between £250,001 and £925,000. More expensive homes will be taxed at a higher rate, with a 10% tax on the portion between £925,001 and £1.5 million, and 12% applied to everything above that. We move into 2015 with exceptional property market conditions. The reformed stamp duty system dovetails with a healthy mortgage market, with lending at its most affordable for years. Mortgage rates are very low, with banks offering rates of less than 2%, and some fantastic fixed-rate products available to help buyers budget more effectively. If you would like a full brief on the new stamp duty brackets and details about current mortgage products, please contact your local branch of Winkworth today.