The stamp duty relief introduced to first-time home buyers in the UK last year is helping thousands of first-steppers to climb up the property ladder. As many as 121,500 first-time buyers have claimed stamp duty exemption ever since it was announced.
According to latest statistics released by HM Revenue & Customs, the estimated total amount relieved by the first-time buyers under the waiver was £284 million. It is encouraging to note that first-time buyers are taking advantage of the stamp duty relief. This is in favour of the housing market, as spiraling prices has worked against interests of the first-time buyers.
In a bid to encourage first-time buyers, the government abolished stamp duty for house purchases valued at £300,000 or less. In addition, property transactions worth more than £300,000, but less than £500,000, are liable to pay 5 per cent stamp duty on the portion over £300,000.
First-time buyers are gradually seeing the value that they are deriving from the relief. During the second quarter of 2018, about 52,400 transactions claimed first time buyers’ relief, registering a growth of 18 per cent over the first quarter.
Strawberry Star, recognising the needs of first-time buyers, has announced a residential-led mixed use scheme in London’s top commuter belt of Luton. Homes specifically targeted at first-time buyers will be built over the next two-three years.
SDLT is paid on property or land purchases in England, and Northern Ireland. The SDLT due depends on the purchase price, with rates and thresholds differing depending on the property type or if it is an additional dwelling. Some transactions qualify for reliefs such as first time buyers’ relief.