When you look for ways first-time buyers have been supported to step on the property ladder, the changes in stamp duty for these buyers must be of significant benefit. Recent figures published by the Office for National Statistics suggest more than £1 billion has been saved by these buyers since the changes were introduced in November of 2017.
There have been 464,700 transactions exempt from this tax in this time, and the total saved by buyers in England and Northern Ireland amounts to £1.11 billion.
A lot of buyers have saved significant money when buying a home
This first-time buyer relief was claimed by more than one in five of transactions in the last quarter of 2019, resulting in savings of £154 million. This is the highest figure for a quarter since the tax break was introduced.
However, while there is a 3% surcharge in place for people buying a second home or investment property, the level of revenue dropped by 3%. This has been attributed to fewer buy-to-let purchases with landlords cautious about expanding their property portfolio at this time.
The Government introduced these changes to assist first-time buyers’ step on the property ladder. For homes that are priced at £300,000 or less, there is no stamp duty to be paid. For homes that are priced between £300,000 and £500,000; these buyers pay 5% on the portion between these figures.
A review of the changes has led many industry experts to credit stamp duty relief as being a massive factor in helping first-time buyers purchase property. There have also been other Government schemes such as the Help To Buy equity loan and the Help To Buy ISA. With different schemes running at the same time, it is impossible to attribute a proportion of benefit to each scheme, but overall, there has been a lot of support for first-time buyers.
First-time buyers represent the largest group of buyers in the market
With first-time buyers making up the largest group of buyers in the property market, what is good for them is good for the entire market. By helping people step on to the property ladder, vendors are being supported, ensuring there is an audience for them to sell their home to.
However, there have been complaints the Government has penalised landlords, and therefore tenants, by pushing first-time buyers on to the property ladder. It is easy to see why some landlords are apprehensive as to what will be announced in the March Budget. The Budget is an opportunity for the Government to follow up on some of the claims and promises made in their manifesto, and the property and letting market is keen to see what will occur.
If you are looking to buy your first home in Rubery, we are more than happy to help you. We are pleased to say we have assisted many first-time buyers, and we can provide you with all the support you need. Whatever move you wish to make in the property market in 2020, make sure you rely on Dunedin Sales & Lettings.