Earlier this week the Chancellor Rishi Sunak announced in the summer statement a temporary cut on stamp duty and a new £3bn green jobs package.
In England and Northern Ireland, the stamp duty tax threshold was previously £125,000 but it has now increased to £500,000; this means homebuyers will not have to pay any stamp duty tax on properties that cost less than this amount. This temporary change will take effect immediately and run until 31 March 2021. By potentially saving homebuyers thousands of pounds it is hoped this will help to “capitalise the housing market” and “boost confidence”. This article explains how the stamp duty cut will work and includes more details.
The new Green Home Grant Scheme is intended to improve the energy efficiency of the English housing stock, on the road to zero carbon, as well as create new jobs in the green sector. From September, homeowners and landlords in England will be able to apply for vouchers for energy efficiency improvements in their home. Mr Sunak said, “The grants will cover at least two thirds of the costs, up to £5,000 per household” adding that low income households can apply for “vouchers covering the full cost, up to £10,000”. This forms part of the new £2bn Green Homes Grant and the vouchers can be used by eligible homeowners to help pay towards loft, wall and floor insulation or double glazing, although the complete list of measures and eligibility criteria has yet to be published.
The remaining £1bn of the package will be spent on improving the energy efficiency of public sector buildings, with £50m going towards retrofitting social housing with insulation, double glazing and heat pumps. Read more about this new scheme from Homes & Property here.