Potential property buyers are now able to save up to £25,000 in stamp duty tax if they buy a property between now and March 31 next year. 

The Chancellor, Rishi Sunak, has implemented plans to increase the stamp duty threshold from £125,000 to £500,000 in hopes to keep the property market moving. 

The government has said nearly nine out of ten people getting on or moving up the property ladder will now pay no Stamp Duty at all.

The aim is to boost the housing market and the wider economy to help the UK recover from the consequences of the coronavirus pandemic.

It comes after the property market was effectively closed between the end of March and mid-May.

Rightmove have said that people enquiring about properties under £500,000  makes up 84 per cent of all buyer enquiries in England.

What is stamp duty?

Stamp duty (or stamp duty land tax, SDLT) is a tax you pay if you buy a property or piece of land over a certain price in England and Northern Ireland. 

The tax applies to both freehold and leasehold properties, whether you’re buying outright or with a mortgage.

Before the announcement, people had to pay stamp duty on homes over £125,000 or non-residential land and properties over £150,000.

The amont of tax you would have had to pay would go up as the value of the property increased.

Properties between £125,000 to £250,000 would previously have had to pay two per cent SDLT whilst properties between £250,001 and £500,000 would have had to pay five per cent tax. 

Saving: £3,200

£160,000 - South Western House, Southampton SO14

This one bedroom apartment is located in the historic South Western House which was once the famous hotel the for cruise ship, Titanic.

Key features include: 

  • Concierge
  • Secure gated parking
  • Historic building
  • Fantastic location

Saving: £4,800

£240,000 - Heysham Road, Southampton SO15

Daily Echo:

Image courtesy of Connells

Located in the popular area of Shirley, this three bed family home could save you £4,800 in Stamp Duty tax.

Key features include: 

  • Victorian style property
  • Victorian style fireplaces
  • Large enclosed rear garden with rear access

Saving: £16,250 

£325,000 - Oakley Road, Southampton SO16

This three bedroom detached family home boasts an immaculate landscaped garden and quirky features throughout the property. 

Key features include: 

  • Off road parking for three cars
  • Loxone electrical system throughout the property

Saving: £18,750

£375,000 - Ethelburt Avenue, Southampton SO16

Daily Echo:

Image courtesy of Charles Powell 

Offered on the market for offers upwards of £375,000 this three bedroom semi-detached house can save the buyers £18,750 in tax. 

The property is located in the highly sought after Bassett Green Estate conservation area.

Key features include:

  • Views over the top green
  • Two generous reception rooms
  • Modern kitchen and bathroom

Saving: £25,000

£500,000 - Hill Cottage Gardens, West End, Southampton SO18

Daily Echo:

Image courtesy of Fox and Sons

This four bedroom detached home in West End brings in a huge saving of £25,000 in Stamp Duty Tax. 

Key features include: 

  • 2 ensuite bathrooms
  • Kitchen/diner
  • Two reception rooms
  • Off road parking for 4/5 cars
  • Garage