Philip Hammond has today announced in his Autumn Budget the abolishment of stamp duty for first-time buyers for homes below £300,000 in a bid to put Britain’s housing crisis at the heart of the budget.
The move will see the tax cut for 95% of first time buyers and abolish it altogether for 80% of them.
A breakdown of the new rates, which have taken effect immediately, 22nd November 2017 are as follows:
If you are a first time buyer of a residential property you can claim relief on purchases:
- made on or after 22 November 2017
- where the purchase price is no more than £500,000
You will pay:
- 0% on the first £300,000
- 5% on the remainder up to £500,000
| Stamp Duty changes for first-time buyers | ||
|---|---|---|
| Property price | Stamp Duty before budget | Stamp Duty now |
| >£125,000 (England and NI) | £0 | £0 |
| >£145,000 (LBBT Scotland) | £0 | £0 |
| >£150,000 (Wales) | £0 | £0 |
| £200,000 (England, Wales, NI) | £1,500 | £0 |
| £300,000 | £5,000 | £0 |
| £400,000 | £10,000 | £5,000 |
| £500,000 | £15,000 | £10,000 |
| Above £500,000 | no change | |
In his autumn statement Hammond, vowed to tackle the UK’s housing crisis by planning to build 300,000 extra new homes per year by the mid-2020s.
According to e Department for Communities and Local Government, home ownership has fallen in recent years, with 62.9% of the estimated 22.8m households in England being owner-occupiers in 2015-16. That is down from 70.9% in 2003.
Just 20% of those aged 25 own a property, compared with 46% two decades ago, according to the Local Government Association. Almost half of those aged 24 to 34 in England pay rent to a private landlord.