- 1st May 2018
- Posted by: Suzy Hill
- Category: Business News
Abolition of stamp duty for first-time homebuyers ‘benefits 69,000 households’
The abolition of Stamp Duty Land Tax (SDLT) for first-time homebuyers of properties worth under £300,000 has ‘benefitted 69,000 households’, government data has suggested.
During the 2017 Autumn Budget on 22 November 2017, Chancellor Philip Hammond announced the abolition of SDLT, with immediate effect. From this time, most first-time buyers paying £300,000 or less for a residential property are no longer required to pay SDLT.
Official figures for the period to 31 March 2018 show 69,000 first-time homebuyers have ‘benefitted from the SDLT abolition’, saving an average of £2,300 each. The government stated that this is in line with its aim of ‘helping over one million people to get onto the housing ladder’ over the next five years.
Other initiatives introduced to help individuals to get onto the housing ladder have also seen a significant uptake, with more than 387,000 people using the government’s Help to Buy scheme, and over 1.1 million Help to Buy ISA accounts having been opened.
Commenting on the data, Mel Stride, Financial Secretary to the Treasury, said: ‘I’m proud that the cut to stamp duty for first-time buyers is helping to realise the dream of home ownership for a new generation, alongside building more homes in the right areas, and generous schemes such as the Lifetime ISA and Help to Buy.’
However, estate agent regulatory body NAEA Propertymark warned that the cost of purchasing a home for first-time buyers is ‘still very high’, with many individuals finding it ‘difficult to save for a deposit’.