Finance

Stamp duty cut saves FTBs £284m

Warren Lewis
|
31st July 2018
HMRC

According to the latest figures released by HMRC, as many as 121,500 first-time buyers have saved £284 million since the cut to stamp duty was implemented during last year's budget.

First time buyers purchasing homes of £300,000 and under now pay no stamp duty at all, and those who have bought properties of up to £500,000 will also benefit from a stamp duty cut.

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.

"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."

Michael McCarthy, developer at Equitas Properties, commented: "46% of our new home buyers benefited from the recently introduced stamp duty reduction. This policy allowed these new home buyers reduced acquisition costs while increasing options, choice and purchasing power."

Shaun Church, director at mortgage broker Private Finance, added: “Stamp duty tax relief saved first-time buyers £125m in Q2 – making the regulation a ‘relief’ for new homeowners in more ways than one. Stamp duty has been the final hurdle for first-time buyers already struggling with mounting deposit costs for years. With this burden now eased or removed for most, and attractive low-rate mortgage deals for new buyers steadily trickling in, the path to homeownership is becoming clearer.

“Yet stamp duty continues to clog up other areas of the market. Transactions have risen quarterly but are lower than they were this time last year. Thanks to a tunnel vision approach to stamp duty relief where only first-time buyers benefit, all other homebuyers – from second-steppers to potential downsizers – are being dissuaded from moving due to punitive tax charges. This creates lack of movement further up the chain in an already sluggish market, and ultimately fewer options for buyers looking to move up and down.”

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