27th Nov, 2017
Last Wednesday we saw Philip Hammond deliver the outcomes of the Autumn 2017 Budget. Some of the key factors in his speech involved stamp duty and housing, so just what does this mean for buyers and homeowners?
The main point Hammond made was that there will be stamp duty cuts made for first-time buyers. This means that the tax that is to be paid when purchasing a property will be removed, up to the sum of £300,000. If the value of the house is larger than the cap, then the remaining amount will incur a charge of 5%. This is to be applied throughout the whole of England and Northern Ireland immediately.
Hammond stated that 95% of all first-time buyers will benefit from these cuts on stamp duty, with only 20% of homeowners having to pay anything at all.
As a result, those who live in particularly expensive regions – such as London – will have less to fork out when stepping onto the property ladder. Overall, this will have a positive effect for the majority of first-time buyers, as it could mean that more expensive homes become affordable!
The government is also now supplying £44bn in order to meet a target of building 300,000 new homes each year by the middle of the next decade. This will result in a higher frequency of properties becoming available for buyers.
Another policy Hammond introduced was that councils will now be given the power to charge 100% council tax premium on empty properties, which could result in an increase in the fees paid by those who own multiple homes.
Reflecting on these Budget outcomes, we are pleased to see the government aiming to do more for first-time buyers, who have notoriously found it more and more difficult to afford a property. With these new schemes in place we hope that the younger generation feel more confident about buying their own home.
If you are thinking of stepping onto the property ladder for the first time, or simply looking for a new home, we may able to help. After all, now may be the ideal time to do just this – pop in and see us at our office or give us a call on 01484 682999.
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