Following the latest Government advice on home moving during the Coronavirus (Covid-19) outbreak, find out more on how we can support your conveyancing journey.
First-time buyers attempting to get on the housing ladder in London have been given a boost with the abolition of Stamp Duty on properties worth up to £300,000.
Those buying a home for the first time that’s worth up to £500,000 in London and other expensive areas across England won’t have to pay a penny of Stamp Duty on the first £300,000 of that transaction.
Chancellor Philip Hammond made the announcement on the Stamp Duty changes in the Budget today, telling the House of Commons that 80 percent of first-time buyers will now avoid paying the land tax.
He said: “I want to take action to help young people saving to own a home. With effect from today, for all first-time buyers up to £300,000, I am abolishing Stamp Duty altogether.
“To ensure that this relief also helps first time buyers in very high price areas like London, it will also be available on the first £300,000 of the purchase price of properties up to £500,000.”
Stamp Duty reform had been discussed at length before the Budget with property and financial experts united on viewing the tax as a barrier to social mobility and an increased burden on younger buyers.
Stamp Duty Land Tax is paid on all residential property worth £125,000 or more and on commercial properties sold at more than £150,000. It is levied on a sliding scale and raises around £11 billion a year for the Treasury.
There were other measures that focused on the housing market, too. Mr Hammond set a target of 300,000 new homes being built every year in England by the mid-2020s, more than double the average number currently being built. An extra £44 billion will also be spent over the next five years to improve construction skills, encourage small builders to return to the house-building market and free up land for building.
Urban areas, in particular cities and large towns, will be targeted to provide high-quality, high-density housing, while councils and London boroughs will be able to impose the full council tax on empty properties to encourage owners not to leave them vacant.
Fran is the content writer for Capital Conveyancing, producing articles on all aspects of the conveyancing process and around the UK property market in general. If there is a topic you'd like to see covered on these pages, please drop Fran a line on [email protected]