For the first time since 1995, figures have shown that more first-time buyers are buying homes than movers who already own, thanks to Stamp Duty cuts.
It’s estimated that over the next 5 years, the government’s Stamp Duty cuts will help over 1 million people get onto the housing ladder.
A government announcement has claimed that 121,500 first-time buyers have taken advantage of the Stamp Duty cut, making a total saving of £284M.
Michael McCarthy, Developer at Equitas Properties said “46% of our new home buyers benefited from the recently introduced Stamp Duty reduction.”
Experts have previously blamed the slow down in people moving house on the crippling Stamp Duty costs, which lead to a government review.
What is Stamp Duty and who does it affect?
Stamp Duty is a tax you are liable to pay when you buy a residential property or land. The tax applies to both freehold and leasehold properties.
If you are a first-time buyer and are buying a property up to £300,000 you are exempt from paying Stamp Duty, there is a 5% tax on the portion from £301,000 to £500,000.
If you have bought a home before there is no tax on properties up to £125,000.
On the next £125,000 (the portion from £125,001 to £250,000), there is a 2% tax.
On the next £675,000 (the portion from £250,001 to £925,000), there is a 5% tax.
On the next £575,000 (the portion from £925,001 to £1.5 million), there is a 10% tax.
The remaining amount (the portion above £1.5 million), a 12% tax applies.
Financial Secretary to the Treasury, Mel Stride, said “Once again, we can see that our 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.”
Has Stamp Duty affected you? Good or bad, let us know below!