In his Spring Statement, Phillip Hammond revealed that 60,000 first time buyers have benefited from the stamp duty exemption announced as part of the Government’s Autumn Budget.
Under the new rules, first time buyers purchasing homes under the value of £300,000 are exempt from paying stamp duty and, those who are purchasing in London and other expensive areas, will not pay tax on the first £300,000 of their purchase on properties up to the value of £500,000.
Figures reported by Halifax in January of this year, echo the Chancellor’s Spring Statement showing a 6% annual increaseon the number of first time buyers making a purchase – meaning the number of first time buyers has reached a ten year high! Back in November, the Government predicted that the change to stamp duty would benefit up to 95% of first time buyers and, if these early stats are anything to go by, it is clear that it has already had a positive impact on the housing market.
Managing Sales Director at Romans, Antony Gibson comments: “The change to stamp duty was great news for first time buyers who are now able to divert these funds to their deposit or, bring their purchase dates forward.
“Low mortgage rates, high employment and Help to Buy have all supported young people in getting on the ladder and so, I expect the trend for rising numbers of first time buyers to continue through 2018 and beyond.
“First time buyers are incredibly important to the overall housing market as they allow existing owners to sell up and take their second step. Despite a lack of supply, the fact first time buyers are increasing in number is extremely positive.”
