Llanmoor Homes welcomes Stamp Tax Duty Reforms

Welsh housebuilder Llanmoor Homes has welcomed the announcement by George Osbourne at the recent autumn statement that there would be significant changes to the stamp duty tax regime.

George Osbourne revealed that under the new regime, stamp duty rates will be graduated in a similar way to income tax rates. The new rates will only apply to that proportion of the property price that falls within each banding, rather than on the whole house price. There will no longer be the huge jumps in stamp duty liability between house price bands.

Under the new regime, no tax will be paid on the first £125,000 of a property, followed by 2% on the portion up to £250,000, 5% on the portion between £250,000 and £925,000, 10% up to £1.5 million and 12% on everything over that.

Tim Grey, Sales Director of Welsh house builder Llanmoor Homes has welcomed this announcement.

Tim said: “The changes to the stamp duty tax announced by George Osbourne will certainly assist the market for both the first time buyer, and for existing homeowners. Under the current system, stamp duty rates have been considered very antiquated and unfair due to tax rates being payable on the whole purchase price above certain thresholds.”

Tim continues: “The current system of charging has been in place for many years and in that time prices of homes have risen appreciably, and in many cases have resulted in very significant stamp duty tax liabilities. This was especially the case once a house price exceeds £250,000 when rates were 3% on the whole amount or £500,000 where rates were 4% on the whole amount.

“This system has without question added to the substantial pressures on home buyers ability to purchase a home and as a direct result has been holding back the sale of homes both in the resale and new build market. This has been at a time when all political parties, the home industry governing bodies etc, all know that not enough homes are being constructed and that this is continuing to exert pressure on the economy as a whole.

“The new home industry has been lobbying hard, both as individual organisations and via the Home Builder Federation, for a change to the stamp duty regime to a graduated system which we believe will prove to be far fairer and will without question provide further stimulus to the market and new home construction as a whole. The new regime will greatly assist those struggling to raise sufficient deposit and funding of related costs to purchase a home.

“I would encourage any potential buyers to take advantage of this new stimulus to the market, which together with the improvement in mortgage availability, excellent mortgage rates and of course the Help to Buy – Wales Shared Equity Scheme make the purchase of a home far more within reach for many potential buyers.

Llanmoor Homes is one of the only remaining large scale, privately owned house builders in South Wales. Established in 1966, Llanmoor Homes is directed from its headquarters in Talbot Green by brothers Simon, Tim & Matthew Grey, and is currently constructing new homes at a total of six developments.

Llanmoor has this year launched Bethesda Field, a development of just 22 homes in Newport, the company’s first ever development in the area.

“At Llanmoor homes we currently have a range of brand new homes available at seven developments throughout South Wales suitable for first time buyers, existing home owners and those looking to down size in the price range of £119,000 to just under £300,000. We would strongly encourage potential buyers to visit our sales centres soon for more information on our current availability and to view our award winning homes.”