The Chancellor's announcement is good news for residential property buyers, whether you are first-time buyer or moving home
From 8 July until 31 March 2020, the SDLT 0% band has been increased from £125,000 up to £500,000. Thereafter the old rates apply. Therefore, if buying at £500,000 you now pay no SDLT at all. Previously this would mean paying £10,000 in tax.
The same saving applies when buying at more than £500,000.
Investors buying residential property still have to pay the additional rate of 3%, but there is still a substantial saving for them.
This will stimulate the residential property market as intended. However, this is a temporary step and it waits to be seen how this will affect the property market from April 2021 onwards.