Great news for the first-time buyer. In the Budget 2017, Chancellor Phillip Hammond announced that Stamp Duty would be exempt for people buying their first property if it costs under £300,000. For first homes under £500,000, there will be no Stamp Duty on the first £300,000, which will reduce the amount a first time buyer may need to save.
How much could a first time buyer save?
- On a £300,000 home, first-time buyers won’t have to pay any Stamp Duty, instead of a £5,000 charge.
- For a £500,000 property, Stamp Duty will now be £10,000 instead of £15,000.
- If your first home costs over £500,000, you will not get a discount.
The changes to SD came into force the day 22nd November 2017 and will continue moving forward. Since the recession in 2009/2010, the banks and other lenders were risk averse, so borrowing became a challenge but more so for the first-time buyer. The change in Stamp Duty means that people interested in buying their own home will be able to get on to the housing ladder. For additional information – https://www.gov.uk/government/publications/stamp-duty-land-tax-relief-for-first-time-buyers-autumn-budget-2017-brief