Homeowners could end up paying higher monthly mortgage bills after a stamp duty cut, a finance expert has warned.
It is being reported that plans to cut stamp duty are in the pipeline to help boost economic growth, as Chancellor Kwasi Kwarteng prepares to unveil a mini-budget on Friday. However, cutting stamp duty would likely benefit wealthier individuals most and risk pricing out first-time buyers, it is being said.
Stamp duty is paid by buyers of land or property in England and Northern Ireland, with higher rates above certain thresholds. Separate land taxes apply in Scotland and Wales. Sarah Coles, a senior personal finance analyst at Hargreaves Lansdown, said potential cuts to stamp duty may risk "doing more harm than good".
