New homes developer reports increased interest following stamp duty reform

In the first weekend of business since the stamp duty reform David Wilson Homes in Wiltshire has reported an increase in enquiries and predicts that the changes will prompt even more people to consider a new year move.

The changes formed part of the Chancellor’s Autumn Statement and anyone buying a home costing more than £125,000 is set to save thousands in tax.

The housebuilder, which has a number of developments in the region, says enquiries were higher than anticipated in the run-up to Christmas.

Mark Wright, the managing director of David Wilson Homes in the South West, said: “These changes have given the market a great boost just before Christmas and represents genuine savings for people looking to move. A crucial factor is that it’s made people feel more confident which is good news as the New Year approaches.”

In the past Stamp Duty was payable on any home costing more than £125,000 with the percentage paid divided into three bands and charged on the full price.

Now that scheme has been scrapped in favour of one which has been described as fairer for buyers and has been welcomed by the industry.

In the past anyone buying a family home costing, for example £275,000, attracted stamp duty of £8,250 – unlike income tax, the rate was not just applied to the portion above the £125,000 nil rate band.

Now they only pay tax on the amount above the threshold and the first £125,000 is exempt. This means they pay stamp duty of £3,750 which represents a saving of £4,500. On a £300,000 home stamp duty has now fallen from £9,000 to £5,000.