New UK Chancellor Kwasi Kwarteng announced the mini budget on 23rd September 2022. One of the announcements that has shaken the property market is the increase to stamp duty relief threshold. He confirmed that the government is increasing the stamp duty threshold from £125,000 to £250,000 and from £300,000 to £425,000 for first-time buyers.
So who are the winners from this budget ?
Following this move first time home buyers are expected to save in an average £5000 and buy-to-let purchasers expected to save a maximum of £2500.
While this is happening, on the other hand the value of Pound Sterling has hit a record low against US$ since 1985. This is great news for foreign investors as they will get more out of the money they have which will encourage them to invest in the UK. When exchanging US$100000 for Pound Sterling you could get approximately £20000 more now than if exchanged early last year.
From this you can see the international investors are on the winning side, followed by First time buyers and lastly buy-to-let landlords.
But hang on, There is a bigger winner.
It’s the homeowners, It’s simple, All three groups of buyers who are encouraged to buy will push the home prices up. Those who were fearing the housing market crash and negative equity can be assured it’s on a pause for now. The amount of increase in equity homeowners will experience due to these forces could easily surpass the benefits the buyers are expecting.
What this simply means is that right now could be the best time to release equity or sell your property.
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