Autumn Budget

 

The Budget 2017 – stamp duty scrapped for first time buyers

The Chancellor, Philip Hammond, has delivered the Budget for 2017. In it, he announced measures to scrap stamp duty for first time buyers on properties up to the value of £300,000 and not levy stamp duty on the first £300,000 of properties valued up to £500,000. The changes are effective as of 22 November 2017.

Our expert says...

Kris Brewster

First time buyers are the lifeblood of the housing market. Any step that makes getting the keys to your first home easier is to be welcomed. However, it’s important not to lose focus of all the factors at play. In order for first time buyers to get on the bottom rung of the housing ladder, we need to see the promised level of new house building being met, together with the capability for next time buyers to move up the housing ladder.


It is also imperative first time buyers are realistically able to save and build up their deposits needed to buy their first home. To date, Skipton is the only financial organisation that has stepped in to offer the government’s Cash Lifetime ISA.


Since we launched the UK’s only Cash Lifetime ISA in June, there continues to be high levels of interest in the product, with over 46,000 people opening the Cash Lifetime ISA investing over £60m to date. Skipton Building Society wants to continue to support the government’s work to encourage savers and buyers. We believe the Cash Lifetime ISA can make a positive step in assisting young savers to get a foot on the property ladder.

Kris Brewster, Head of Products

For first time buyers, the change to stamp duty announced in the Budget means:

Property purchase price Old Stamp Duty level New Stamp Duty level Saving
£125,000 £0 £0 £0
£200,000 £1,500 £0 £1,500
£300,000 £5,000 £0 £5,000
£350,000 £7,500 £2,500 £5,000
£400,000 £10,000 £5,000 £5,000
£500,000 £15,000 £10,000 £5,000
(SOURCE: SDLT calculations via gov.uk)

The government says this means 80% of first time buyers will pay no stamp duty and represents a cut for 95% of all first-time buyers who pay stamp duty. The measure follows a further £10bn in funding for the Help to Buy scheme announced in October and the introduction in April 2017 of the Lifetime ISA for first time house buyers.


When was the last time you paused to think about your future?

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