Today's announcement by the government brings a fresh shake up to the housing market and is a stimulative attempt to prolong the property market boom, through the cost of living crisis and recession.

First time buyers will see the greatest benefit, although this stimulation at the bottom end of the market, will naturally have a knock-on effect for the rest of the market too.

What are the changes?

The changes to stamp duty

• Stamp duty threshold increased from £125,000 to £250,000.
• Threshold for first-time buyers increased from £300,000 to £425,000

Chancellor Kwasi Kwarteng says it should remove 200,000 people from having to pay stamp duty and is a 'permanent' cut effective today.

"Home ownership is the most common route for people to own an asset, giving them a stake in the success of our economy and society." Kwasi Kwarteng

Anyone other than first time buyers spending £300,000 will now be charged £2,500, rather than the previous £5,000.

What does it mean for property investors?

Don't start popping the champagne yet, it’s not all good news, especially for property investors. Those purchasing additional properties - such as buy-to-let investors - are still required to pay a 3% surcharge on top of the revised stamp duty rates.

My view

While the government are giving with one hand, the banks are taking with the other, after the increase in interest rates announced yesterday by 0.5% to 2.25%.

What happened in 2020 when the government introduced a stamp duty holiday? House prices sky-rocketed as over-zealous estate agents priced houses even higher to account for the fact the buyers were no longer paying stamp duty and had extra funds to spend.

While I don't think the same price hikes will be seen this stamp-duty-announcement-time around, I do think it will create enough hype to stimulate the market and overcome any depression expected after news of the interest rate hike and recession broke yesterday.

 And, of course, any stimulation of the market is a good thing for existing property investors, who are likely to see the value of their existing properties hold or increase.