In today's Budget the Chancellor, Philip Hammond, announced the abolition of stamp duty for first time buyers on properties worth up to £300,000.
To reflect higher property values in London and other parts of England and Wales, first time buyers purchasing properties up to £500,000 will only pay stamp duty on the amount above £300,000 (at the standard rate of 5%). Previously, first-time buyers paid stamp duty on purchases above £125,000.
First time purchasers of properties above £500,000 will pay the standard rates of stamp duty land tax.
According to Treasury calculations, this will save the average first time buyer in London £5,000 and will remove stamp duty all together for first time purchasers outside the capital.
The change comes into force with immediate effect.
Robert McLaughlin, Sales Director at Kinleigh Folkard & Hayward, said: “This is excellent news for first time buyers and the savings many will make will help cover the numerous other purchasing outlays such as surveys, legal fees and moving costs. Nearly a third of the properties coming onto the market this year in our areas of London have been at and below £500,000 so there are plenty of homes that fall within the relief bracket in the Capital.”
Source: HM Treasury