Bold Stamp Duty cut for first-time buyers
First-time buyers purchasing a property of up to £300,000 will no longer have to pay Stamp Duty Land Tax (SDLT), it was confirmed as part of the Autumn Budget announcements.
On 22 November, the Chancellor, Philip Hammond, unveiled £15 billion worth of measures to tackle the UK’s so-called housing crisis, the most prominent of which affects those struggling to get a foot on the property ladder.
Most notably, the new measures see SDLT effectively abolished for first-time buyers purchasing homes of up to £300,000.
Furthermore, newcomers to the housing market purchasing homes of up to £500,000 will not need to pay SDLT on the first £300,000 of the home’s value, Mr Hammond has confirmed.
Announcing his plans to “revive the homeowning dream,” the Chancellor said that 95 per cent of all British first-time buyers would be affected by the bold cut.
He added that 80 per cent of first-time buyers would now not pay SDLT at all.
“This is our plan to deliver on the pledge we have made to the next generation that the dream of home ownership will become a reality in this country once again,” The Chancellor said.
Many suspect that the change will benefit existing homeowners as well as first-time buyers.
This is because the Office for Budget Responsibility (OBR) has estimated that property prices across the country will rise by as much as 0.3 per cent over the next year as a direct result of the cut.