22 November 2017
Budget 2017: What Does The Stamp Duty Change Mean For First-Time Buyers?
Today the Government announced in the new Budget plan that stamp duty will not have to be paid on the first £300,000 of the price of a house for first-time buyers.
What does this mean for first-time buyers?
Abolishing stamp duty for first-time buyers is fantastic news. The change is effective from today, 22 November, which means anyone completing the purchase of their first home today will not have to pay stamp duty provided the purchase price is less than £300,000. For new buyers looking at houses up to £500,000, no stamp duty will be paid on the first £300,000.
This will make it easier for people to purchase their first home which will ultimately assist the property market generally and we will hopefully see an increase in property sales.
Buying a property for the first time, or indeed for anyone, will often mean many questions, especially around the subject of the criteria for the stamp duty exemption.
While Chancellor Philip Hammond’s plan is 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” it may not mean considerable savings for everyone, depending on where you are based in the country. The change will apply in England and Northern Ireland, and in Wales up until the end of March, but some may see little in the way of savings. Whereas the buyers of properties priced £500,000 could save £5,000, in areas of the country where house prices fall only slightly above the £125,000 threshold for stamp duty, the saving is considerably less.
The Office for Budget Responsibility (OBR) has said existing homeowners are to benefit as it is anticipated the change will cause house prices to rise by 0.3 per cent.
Buying a property for the first time, or indeed for anyone, will often mean many questions, especially around the subject of the criteria for the stamp duty exemption. Often people may have questions around the criteria like when will this start? What if my partner has owned a property etc?
The residential property lawyers at Slater and Gordon can act in the purchase of properties for first time buyers and guide them through the process. We deal with all types of purchases, houses, flats, new builds, shared ownership purchases, purchases under the government Help to Buy Scheme and we can obtain the Help to Buy ISA bonuses for clients.
Call us anytime 24/7 on freephone 0808 175 8000 or contact us online and we will call you.
Linda Kirk is a residential property solicitor and national practice group leader at Slater and Gordon Lawyers in Manchester.