LONG-established Crediton estate agency, Helmores, believes that the recent changes to Stamp Duty charges, announced in the Chancellor of the Exchequer's Autumn Statement on Wednesday, December 3, and in effect now, is a much fairer system for home buyers.

Under the new rules, George Osborne has said that 98 per cent of homeowners in England and Wales will pay less Stamp Duty as of midnight on December 3, meaning that home buyers could save an average of £4,500 on stamp duty (for a property costing £275,000), which bring down the cost of buying a property for all but the highest valued properties.

George Clover, associate partner for Helmores, said: "This is huge news for home buyers and a day we believed to be a long way off. Essentially it means that stamp duty will be now calculated on a more appropriate graduated rate, working in a similar way to income tax.

"Those who have already exchanged contracts but haven't completed can choose which scheme to use, although most will benefit from the new calculation. "

No tax will be paid on the first £125,000 of a property, followed by two per cent on the portion up to £250,000, five per cent on the portion between £250,000 and £925,000, 10 per cent on the next bit up to £1.5 million and 12 per cent on everything over that.

George continued: "This is great news for buyers, as we believe it is a fairer system that is much more appropriate for the majority of purchasers. From a seller's point of view, this could have a benefit locally as the proportion of houses for sale in the £125,000 - £750,000 bracket is high.

"However, a word of caution, as the change in stamp duty may mean the £250,000 threshold is removed, but whether it will make a difference to house prices remains to be seen. We watch the market with great interest!"