Removing stamp duty for many first time buyers in the UK is expected to help over a million people get on the housing ladders over the next five years, according to official projections
Since the policy was introduce already 121,500 first time buyers have avoided paying £284 million in stamp duty as it is no longer levied on properties up to £300,000 and less onerous of homes up to £500,000 for buyers in London where prices are higher.
‘The cut to stamp duty for first time buyers is helping to make the dream of home ownership a reality for a new generation , exactly as we intended. In addition, we’re building more homes in the right areas, and have introduced generous schemes such as the Lifetime ISA and Help to Buy,’ said Financial Secretary to the Treasury, Mel Stride.
Some 46% of new home buyers have benefitted from the cut, according to Michael McCarthy, developer at Equitas Properties. ‘This policy allowed these new home buyers reduced acquisition costs while increasing options, choice and purchasing power,’ he added.
The move was announced as part of the Government’s long term commitment to make housing more affordable. As part of the Autumn Budget housing package, the Chancellor announced at least £44 billion for housing, which includes at least £15.3 billion of financial support for house building over the next five years.
He also announced the aim of building 300,000 new homes a year in the areas that need them the most, as well as encouraging better use of land in cities and towns.
In addition to government-backed schemes such as the Help to Buy equity loan and Help to Buy ISA, those hoping to make their money go further can open a Lifetime ISA to either save for a first home, or for later in life.