Will the stamp duty cuts and energy price cap keep the UK’s home moving plans on track?

October 05, 2022 Reading Time: 3 minutes

Understandably, residents of Ilford and Barkingside are feeling stressed about rising energy bills and the ever-increasing cost of living. Some have even told us they are rethinking plans to move home this autumn.

Fortunately, there are two breaking news stories that could ease your household budget woes and help your moving plans get back on track.

Read on to find out what to expect from the new Energy Price Cap and discover how the recent stamp duty cut could help UK buyers.

What’s the latest on energy price rises?

Have you been dreading the promised 80 percent energy price rise on 1st October? The good news is, it hasn’t happened. For the next two years, energy bills will be capped at £2,500 a year for a typical household.

The £2,500 figure isn’t set in stone: it’s there to let you know roughly how much an average household can expect to pay for gas and electricity. If you use less energy, you’ll pay less, and if you use more, you’ll pay more.

Previously ‘typical usage’ was just £1,971 a year. £2,500 may be a big increase, but it’s a welcome alternative to the rise of £3,549 – plus a further price hike in January – we had all been expecting. This autumn you can now relax a little more. You should also start to receive the £400 government rebate on energy costs.

How are stamp duty rates changing?

Stamp duty is the tax you pay when buying a property, but the stamp duty threshold in the UK can vary. The level depends on whether you are buying your first property, purchasing a second home or buy-to-let, or simply moving on to a new, permanent home.

In last month’s ‘mini Budget’, the Chancellor announced a stamp duty tax cut. That means if you are buying your next new home, you will pay no tax on the first £250,000 you spend (the change effectively doubles the amount you can save).

The deal is even more generous for first-time buyers, who will only start to pay tax after the first £425,000 of a property’s value (increased from £300,000). First-timers will also be able to claim tax relief on more expensive properties. Previously, they could only claim relief on houses costing less than £500,000, but the discount now applies to properties costing under £625,000.

This means that most people can save up to £2,500 on stamp duty payments, and some will pay no tax at all! Lucky first-time buyers will save stamp duty of up to £11,250.

Need expert property advice?

If you’re planning to move home this autumn, we’d be happy to provide any help and guidance you need.

Why not reach out to our Ilford estate agents or contact our estate agents in Barkingside? We’ll show you some fantastic properties for sale or rent: we can also put you in touch with advisors who can access the best mortgage deals.