The new stamp duty rules introduced as part of the Autumn Budget are already having an effect as 69,000 first time homeowners have taken advantage.
Those in London have saved £4,300 on average since 22 November 2017, with the UK wide figure lower at £2,300 for the same period.
Why are first-time buyers getting a stamp duty discount?
The financial challenges facing homeowners is a significant issue, the relief introduced on 22nd November 2017 is designed to remedy this. Stamp duty is exempt for first time buyers purchasing a property worth £300,000 or less. In addition to this, there is only a 5% charge on the amount between £300,000 and £500,000.
Where are first-time buyers saving the most?
HM Revenue and customs says that £159 million worth of relief has been claimed since the new measure was introduced. London made up £40 million of that, with the south east adding £38 million.
Paying no stamp duty vs getting a discount
The majority of first time home buyers (54,600 out of a total of 69,000) bought homes that were worth under £300,000, enabling them to not pay any stamp duty at all.
9,000 buyers in the South East claimed relief on their total stamp duty bill. The highest number of buyers claiming the 5% relief was in London at 6,100.
Can you save with first-time buyers’ stamp duty relief?
As long as you have never owned a property before and you are buying in England or Northern Island and you plan to use the property as your main residence.
Are you thinking of making a move this year? Our Mortgage team here at Westminster Wealth can ensure that you receive the most suitable mortgage for your personal circumstances, needs and objectives. Contact us today.
Information is based on our current understanding of taxation legislation and regulations which is subject to change.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Our charges are usually between £395 and £995 depending on the type and amount of borrowing required and individual circumstances.
Stamp duty slashed for 69,000 first-time buyers