The big Budget statements have been made, and first-time buyers have been granted stamp duty relief on properties up to £500,000. This is great news for those looking to get on the property ladder, but you might be wondering how the savings stack up compared to previous stamp duty regulations.
The Big Red Briefcase
Chancellor Philip Hammond announced a raft of changes to the government’s approach, and directed funding at the housing market. This was summed up with his pledge to invest a whopping £44 billion pounds over the next 5 years to stimulate the housing market in Britain.
What is Stamp Duty?
At the centre of the housing budget were changes to stamp duty for first-time buyers. Stamp duty, known as Stamp Duty Land Tax by the government, is a form of tax paid when purchasing land or property. Previously, all purchases of primary property were subject to tax on the value of the property that fell into each tax band. Stamp duty is payable within 30 days of the completion of the sale, and paid to HMRC.
What does this mean for me?
The new changes mean first-time buyers will not pay any stamp duty on properties up to £300,000. This is fantastic news for first-time buyers, who on average spend £207,693 on their first home. This means the majority of first-time buyers won’t pay a penny of stamp duty on their first home, saving an average of £1,650.
For first-time buyers in London, this stamp duty change will also provide relief, where the average first-time buyer spends £410,000 on their property. The new stamp duty relief covers properties up to £500,000, meaning first-time buyers will only pay stamp duty on the £300,000 -£500,000 portion of the property. This means those buying a property at £410,000 will pay £5,500 in stamp duty, saving £5,000 in comparison to the previous regulations.
Check out our Habito Stamp Duty Index to see the effect of the new regulations on the cost of homes for first-time buyers:
Who should I speak to?
With relief on stamp duty, and more first-time buyer products on offer, now’s the time for those looking to get on the property ladder to make a move. Habito is here to help you every step of the way, with a team of friendly mortgage experts on hand to answer any first-time buyer questions you might have, and guide you through your application.
The first step is using our clever Mortgage Illustrator, which can give you an idea of how much you could expect to borrow, including which mortgage product might be right for you, in a matter of minutes. All it takes is some simple information about yourself, without any credit checks, to get a picture of what your mortgage might look like.
From there, our mortgage experts can advise you on products and rates, and help secure the best possible deal for you. Head over to Habito now to find out if you could be in with the chance of saving on your first home, and let us help you find mortgage harmony.