Following last week’s mini budget that saw stamp duty changes made in England and Northern Ireland, Wales has followed suit raising the price at which home buyers begin paying land transaction tax from £180,000 to £225,000.

Paul Cookson, Regional Sales Director, said: “Following the rise in interest rates over the last few months, home movers and estate agents across Wales will all welcome the land transaction tax that has been announced. This will soften the impact of rising mortgage rates and also lower the fixed costs of moving. This will give an injection of confidence at just the right time.”

Unlike the changes made in England and Northern Ireland that came into effect immediately, the Welsh changes to its land transaction tax will kick in on 10 October.

As well as changes to the minimum property price in which buyers begin paying the tax, anyone buying a home costing less than £345,000 will see a reduction in the tax they pay, up to a maximum of £1,575. However people buying homes worth more than £345,000 will see an increase – up to £550 – but these only represent around 15% of property transactions in Wales.

Rebecca Evans, Minister for Finance and Local Government, said: “This is a change tailored to the unique needs of the housing market in Wales and contributes to our wider vision of a fairer tax system. 61% of homebuyers will not pay tax on their purchase. These changes will get support to people who need it and help with the impact of rising interest rates. We also know that helping people at the lower end of the market will have a particular benefit for first time buyers.”

If you want advice on purchasing your first or next home, get in touch with your local Moginie James branch in Cyncoed, Pontcanna, or Roath and we’d be happy to advise.