Those first-time buyers faced with months, even years of saving to get their first home can now breathe a little easier thanks to the Government’s announcement in the recent Autumn budget, to scrap Stamp Duty on homes less than £300,00, for those buying their first home.
Stamp Duty is a tax that adds thousands of pounds to the cost of moving and for first-time buyers with initial high deposits to save for, the extra burden of the Stamp Duty tax can cause significant delays to moving, meaning losing out on properties and missing out on opportunities, while the tax is saved.
A welcome decision and one of the biggest announcements to come from the budget, scrapping Stamp Duty for first-time buyers on homes less than £300,000 will help many. Yes, there are some new build property schemes across the country where incentives such as paid Stamp Duty and solicitor fees are available when selected homes are purchased, but this new commitment from the Government helps all first-time buyers, whether buying new build or older properties.
For a home worth less than £300,000 there will be no Stamp Duty to be paid at all while homes worth between £300,0001 and £500,000 will require only 5% to be paid on the portion of that purchase price.
Many argue there are plentiful opportunities for first-time buyers already with Help to Buy schemes and other initiatives, but these are restricted to new build homes. By removing Stamp Duty on properties worth less than £300,00, first-time buyers across the length and breadth of the country will be able to purchase their first property quicker, regardless the type. And once property purchases increase, there comes a certainty for the demand, which instils confidence in house builders to invest in land and build more homes, therefore improving supply.
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