The Chancellor has started to tackle the UK housing market slow-down by announcing that stamp duty is to be abolished for all first time buyers on properties bought up to £300,000 from 22nd November 2017.
In addition, first time buyers purchasing properties up to £500,000 will pay no stamp duty on the first £300,000.
This is a very welcome Christmas gift for first time buyers, who have been struggling to get on the UK ladder for some time.
This means that first time buyers purchasing a £450,000 will save £5000. Unfortunately those clambering onto the property ladder are still having to source huge deposits for mortgage lending models, but this cut to stamp duty is a welcome incentive to help keep the property market moving.
In his Budget, Philip Hammond announced that 80% of first time buyers would pay no stamp duty at all. With 358,000 first time buyers in the last year, this means that at least 24% of all sales in the UK’s housing market are set to be charged 0% tax. Once other exempt sales under £125,000 are taken into account, this figure will be even higher.
Two thirds of properties bought so far this year across the country have been under the new threshold but there are large regional variations.
In Wales and the North East, over 90% of sales in the last year have been over £300,000 while just 17% of sales in London were for less than £300,000.
While good news for first-time buyers, it does not give any encouragement to owners higher up the chain to downsize. However, those looking to sell under £500,000 in the South East should see more buyers for their properties and more activity in this sector of the property market.
Waterfords have many ideal first-time buy opportunities or if you are still saving for a deposit to get yourself on the property ladder, we have a good selection of properties to rent too. No doubt the recent stamp duty changes will go a long way towards saving for your deposit.
You could save thousands on the following properties as a first time buyer…
SAVE £3,250 on this 2 double bedroom apartment with allocated parking in the heart of Fleet. Click here to find out more.