Great news for hard-pressed young people trying to get on the housing ladder! In his Autumn Budget, Chancellor of the Exchequer Philip Hammond announced the immediate scrapping of Stamp Duty altogether for first time buyers purchasing properties up to £300,000, or on the first £300,000 of properties worth up to £500,000.
This equates to a saving of as much as £5,000, and effectively means that 80% of all first time buyers outside London are now exempt from Stamp Duty altogether1 - compared to just 21% before the change came into force.
For those first time buyers already looking for properties, the saving may allow them to purchase a property which was previously just out of their price range - so giving them more choice. The saving could also unlock more attractive mortgage options, since better rates are often available for borrowers with a larger deposit – potentially resulting in even greater savings.
For many first time buyers, the change will also reduce the time needed to save up a sufficient deposit, while helping to boost confidence in the housing market. The fact that house prices may be affected is no bad thing, either. After all, no-one wants the property they are buying to fall in value – so this should encourage buyers to go ahead.
Finally, used in conjunction with the Help to Buy scheme, the change represents a double positive for New Homes. Under the scheme, which is available on new build properties costing up to £600,000, you only need a 5% deposit, with an additional 20% being provided by the Government in the form of an equity loan, interest free for the first 5 years. The buyer then only has to find a 75% mortgage. For first time buyers, that 5% deposit is suddenly much easier to find!
What better time, then, to talk to us about buying your first home! Why not give us a call today – or drop into our nearest branch.