Chancellor reports 60,000 first time buyers have already benefited from the stamp duty exemption!
It was one of the marquee announcements in Chancellor, Phillip Hammond’s Autumn Budget of 2017, a stamp duty land tax relief for firsttime buyers on purchases up to £300,000 with the existing rate of 5% applying to properties between £300,000 and £500,000.
Since 22 November 2017, The Chancellor revealed that 60,000 first time buyers have now benefited from the stamp duty exemption.
As mentioned, under the new rules, first time buyers purchasing homes under the value of £300,000 are exempt from paying stamp duty and, those who are purchasing in London and other expensive areas, will not pay tax on the first £300,000 of their purchase on properties up to the value of £500,000.
A recent report by the Halifax at the start of the year, showed a 6% annual increase on the number of first time buyers making a purchase – meaning the number of first time buyers has reached a ten year high.
On announcing the new policy back in November, the Government predicted that the change to stamp duty would benefit up to 95% of first time buyers. If these early indictions are anything to go by, it is clear that it has already had a positive impact on the housing market.
Prime Minister, Theresa May, has made a promise to the electorate that she would take “personal charge” of solving Britain’s housing crisis and with low mortgage rates, high employment, incentives like the Help to Buy scheme, as well as the stamp duty exemption, young people are finding it easier to get on the property ladder.
The importance of helping First time buyers get their first home is incredibly important to the overall housing market. It’s only by making new homes purchases more achievable, that allows existing homes owners to sell up and take their next step.