ESTATE agents and financial institutions in Somerset have broadly welcomed Chancellor George Osborne’s review of stamp duty claiming it will boost the housing market. The changes announced last week mean 98% of homeowners in England and Wales will pay less than they would have under the old system. Only people who buy homes worth more than £937,000 will pay more in tax. With the average cost of a detached house in Somerset around £341,000 it will mean a saving on stamp duty of £3,180.

Alison Parker, of Pardoes solicitors, described the new system as “a game changer” and forecast a huge post-Christmas impact on the housing market.

“The changes are long overdue and have immediately removed the artificial thresholds which have existed for the payment of stamp duty when you purchase a property.

“The new system promises a much fairer method for calculating the tax. “For example anyone purchasing below £925,000 will see a reduction in the amount of tax they are required to pay and since the majority of UK properties are below this threshold, most purchasers will see a significant benefit.”

Graham Ford, partner at Greenslade Taylor Hunt, said: “The whole process will become much simpler to understand for buyers and sellers and should stimulate the market, particularly for property below £500,000.”

Robert Cooney, of Robert Cooney Estate And Lettings Agents, was equally upbeat: “On the face of it this is welcome news for large numbers of homebuyers and signals an end to one of the worst designed and most damaging of all taxes.

“It is true that many properties faltered or took longer to sell when priced at just above any of the previous thresholds.

“On balance, whilst some are saying that the savings will drive house prices upwards in the medium term and that as a consequence more people will ultimately pay a higher rate of tax, for the buyers of this part of Somerset, it is very good news.”

Mike Rogers, director of independent financial advisers, Vision South West added: "With all the extra challenges we have faced in the mortgage market over the past twelve months, it is pleasing to see a real difference being made for 98% of all homeowners going forward.

“The stamp duty changes in particular for those looking to purchase between £250,000 and £350,000 will see real savings in the cost of buying a house.

“Somebody looking to buy or move at a purchase price of £275,000 would have previously paid £8,250 stamp duty but will now pay £3,750.”

The changes would be especially good news for first time buyer, claimed Samantha Cooper, managing Director of Cooper Associates: “The burden for most first-time and next-time buyers is raising both stamp duty and a deposit.

“Any reduction in these upfront costs is welcome for them.

“Similarly, it is logical to expect a more even distribution of house prices throughout the market now that buyers aren’t impacted so heavily at certain thresholds as they were before.

“However, house prices are driven by what buyers can afford. A reduction in stamp duty is likely to mean a slightly higher offer on a purchase and so we expect to see the market move very marginally upwards.

“The issue still remains that the gap between house prices and earnings is still too high, we need a strong supply policy in line with the reform too.”

A spokesperson for Ashfords, Victoria Saunders said: “The new system is far more equitable and will have a particularly positive impact on properties valued between £250,000 to £280,000, which had an artificial ceiling imposed due to the large leap from the 1% - 3% stamp duty land tax charge under the previous system.

“The new system bodes well for a strong spring market which we look forward to.

“In addition for those clients who are completing their purchases before Christmas there should be a little extra spending money in their pockets."

Rebecca Gripton, sales manager for Crest Nicholson South West, said: “The reduction in stamp duty is great news for househunters in the region, especially ahead of Christmas.

“The new year is often a time when people start to consider a move and being able to save money on costs like stamp duty can make a real difference.”

Use the link below for the HRMC stamp duty calculator to compare rates pre and post announcement: http://www.hmrc.gov.uk/tools/sdlt/land-and-property.htm

For further information on some local businesses who can assist you with your next move, please visit http://www.somersetcountygazette.co.uk/homes/stamp_duty_changes/