Ask the Expert

Hegarty Solicitors advises homebuyers what the SDLT cuts mean for them

The cost of moving home has been cut with Prime Minister Liz Truss and chancellor Kwasi Kwarteng’s mini-budget announcement of a cut to Stamp Duty Land Tax (SDLT). The mini-budget or fiscal statement as it is officially known has been announced as part of the government’s “growth plans”, at a time when Britain faces the prospect of a year-long recession, raised inflation and a cost-of-living crisis. The cut to SDLT aims to boost the property market and help more first-time buyers buy their first home. Sarah Martin, Acting Head of Residential Property at Hegarty Solicitors, advises what the announcements mean for homebuyers.

What is Stamp Duty Land Tax?

Stamp duty is paid by buyers of land or property in England and Northern Ireland, with different rates depending on the value of the land or property. Separate land taxes apply in Scotland and Wales.

What are the cuts to Stamp Duty?

Before the SDLT cuts, first-time buyers paid no SDLT up to £300,000 on their first house purchase. For other buyers of residential properties, there was no SDLT to pay on the first £125,000. Between £125,001 and £250,000, a two per cent tax was applied; five per cent between £250,001 and £925,000; 10 per cent between £925,001 and £1.5 million; and 12 per cent on the value of a property above £1.5 million. The proposed cuts reduce Stamp Duty Land Tax by raising the threshold of how much a property has to cost before stamp duty is paid to £250,000. The threshold for first time buyers paying SDLT has also risen to £425,000. In addition, chancellor Kwasi Kwarteng added: “We’re going to increase the value of the property on which first-time buyers can claim relief, from £500,000 to £625,000. The steps we’ve taken today mean 200,000 more people will be taken out of paying stamp duty altogether. This is a permanent cut to stamp duty, effective from today.”

I am in the process of buying a house, will the cuts apply to my purchase?

The reduced rates of SDLT will apply to property purchases that complete from now. Your conveyancer will be able to offer advice about what the cuts mean for your purchase, and advise whether you are able to take advantage of the SDLT cuts for your transaction.

How will this affect the housing market?

In recent months the demand for housing in Britain has not been met with supply, causing rapid house price inflation with UK average house prices increasing by 15.5 per cent in the year to July, the highest annual inflation rate since May 2003, according to official figures. The Centre for Economics and Business Research (Cebr), have predicted that 2023 is likely to be a challenging year for the UK housing sector. With steep rises in mortgage rates and cost of living pressures for households, UK house prices are expected to fall by 4.5 per cent on average next year. However, new data has predicted that this fall in house prices is still unlikely to make property more affordable for buyers, with house price growth consistently outpacing earnings. So, the announcement of a cut to SDLT could give a boost to the market at a time when household finances are being squeezed. It is hoped the cuts to Stamp Duty may echo a previous boost similar to the ‘stamp duty holiday’ in 2020 which was introduced to stimulate the housing market during the pandemic. The SDLT ‘holiday’ resulted in transactions in the year to June 2021 increasing by 19 per cent compared to the previous 12 months. However, it remains to be seen if the SDLT cuts announced will offer the same boost in the face of rising interest rates on mortgages and higher cost-of-living.

How much will it cost to move house?

Buyers who are able to take advantage of the cuts to SDLT are set to find the costs of moving house have reduced. However, if you are thinking of moving house there are a number of costs to consider, including Legal Fees, Stamp Duty Land Tax, Valuation Fees and Surveyor’ fees. You can find out exactly how much SDLT you are likely to pay using the HMRC calculator. How much you will have to pay for your legal fees depends on whether you are buying or selling property (or both), the value of the property you are selling / purchasing, and whether the property is leasehold or freehold. Hegarty Solicitors has an online calculator that will show you how much you can expect to pay based on your individual circumstances, with no hidden extras. To speak to a conveyancer at Hegarty Solicitors about how the SDLT cuts will affect buying your new home, contact us today using by calling 01733 346333 or visit www.hegarty.co.uk/quote for an online conveyancing quote.

Making Meetings More Sustainable

With sustainability top of the agenda for those organising events, what should you consider when planning your meeting, conference or dinner? Judith Sloane, Head of Meet Cambridge which has more than 50 venues in its portfolio, gives 10 top tips to help you achieve your objectives.

1. CHOOSE YOUR VENUE

When you’re looking for a space for your event, consider what’s on offer in terms of sustainable features and practices. Some venues have officially recognised environmental accreditations such as Green Meetings.

2. IN-PERSON OR HYBRID

Face-to-face meetings might be your preferred choice but it’s worth considering a hybrid event format to avoid the impact of travel. Explore what a venue can offer in terms of linking up with specialist providers to deliver a streamlined and professional event that will appeal to both audiences but remember that technology will also add to the event’s carbon footprint.

3. CONSIDER DELEGATE TRAVEL

Choose venues that are located close to railway stations or on bus routes to make it easy to use public transport. Other options in Cambridge include hiring cycles or using scooters within the city centre. For those driving, encourage car-sharing and look for venues with EV charging points. Why not consider rewarding those who choose a sustainable method of transport.

4. GO PAPERLESS

Gone are the days of hard-copy conference packs which have been specially produced for just one event. Today’s delegates look for ways to have all the information they need in digital format, so they can go paperless and travel light. Not only should the paperless approach be for the day itself but also for organisers in the run up to the event.

5. FOOD FOR THOUGHT

Choose fresh, seasonal produce that’s locally sourced with plenty of plantbased options. Calculate food miles and provide the details on menus to encourage delegates to choose the most sustainable options. Opt for venues that can demonstrate a commitment to local produce and food waste reduction.

6. REMOVE, REDUCE, RECYCLE

Consider previous events, which elements could you remove altogether; goody bags, note pads and pens for example. Then think about ways to reduce the environmental impact of your event – a meat-free menu using locally sourced products would certainly help. Once you are clear on what can be removed and reduced, choose products you could recycle – pop up banners for example, can you find a supplier that uses materials that can be recycled?

7. OFF-SETTING

When you are confident that you have done everything you can to remove, reduce and recycle and after having measured the carbon footprint of the event, it may be time to consider offsetting but be sure to choose a reputable company so you can be sure that your off-setting goes to the right project.

8. PLUG INTO RESOURCES TO HELP

Look for Sustainability Toolkits to guide you or training courses which will provide the information you need to create more sustainable events. It’s also worth networking to hear about other organisers’ experiences and advice so you can share tips.

9. CORPORATE SOCIAL RESPONSIBILITY

Social sustainability is also important, look for ways in which your event could contribute to the local area, use a charitable venue or seek out volunteering opportunities that would allow your group to participate in a project whilst attending the event.

10. MONITOR YOUR ACHIEVEMENTS

You can learn from experience and by using measurement tools, you can track your progress in creating events that are not only innovative and memorable but sustainable too. To find a suitable venue for your event, that will help meet your sustainable objectives, contact Meet Cambridge on 01223 768740 www.meet-cambridge.com