General, Property

The growth of house prices has slowed in the UK

9 Dec , 2014  

hand draw house against blue skyAccording to the latest figures from Halifax, the annual growth of property in the UK had slowed to 8.2% in November compared with 8.8% in October.

The lender, part of Lloyds Banking Group, said that property prices were 0.4% higher last month than they were in October. The figures came on the same day that a massive overhaul of the stamp duty system took effect.

As of 3rd December, the new rates of stamp duty apply only to the amount of the purchase price that falls within the particular duty band, making it more like income tax.

In other words, someone buying a house for £200,000 pays nothing on the first £125,000, and then 2% of the next £75,000, giving them a bill of £1500. Previously they would have paid 1% on the total purchase price, giving them a bill of £2,000. Thus although the percentage rates appear higher in some cases, the overall charge will mostly be lower.

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