Chancellor Phillip Hammond announced on Wednesday 22nd November 2017 that the threshold for Stamp Duty, for first time buyers, will be raised from £125,000 to £300,000 resulting in potential savings of £5,000. Further, for first time buyers, properties valued up to £500,000, will not be taxed on the first £300,000.
The Chancellor has stated that this will save first time buyers an average of £1,700, this being the amount first time buyers would previously have spent on Stamp Duty on average. However, the Office for Budgetary Responsibility (OBR) has warned that the Stamp Duty reduction could result in an instantaneous rise in house prices by an estimated 0.3% in the next year. They also suggest that this will benefit existing home-owners more than first time buyers.
According to Rightmove, a 54% rise in searches for London properties up to £500,000 was seen within a day and negotiations on house prices which had previously come to a standstill were seen to recommence now that individuals have been able to increase their offers by £5,000.
For first time buyers, now is the ideal time to get on the property ladder before the predicted rise in house prices. Do get in contact with us to obtain a quote for our conveyancing services to guide you through the process of moving into your dream home.