Autumn 2017 Budget: Housing one of the main topics with stamp duty abolished for first time buyers up to £300,000
Housing and property was one of the key areas receiving attention in the Budget today.
The Chancellor, Philip Hammond announced that Stamp duty will be abolished with immediate effect for first-time buyers purchasing properties worth up to £300,000. In addition, the first £300,000 of the cost of a £500,000 purchase by all first-time buyers will be exempt from stamp duty, aimed at helping those in London and other more expensive areas.
The Reduction will apply immediately in England, Wales and Northern Ireland although the Welsh government will have to decide whether to continue it when stamp duty is devolved in April 2018. It will not apply in Scotland unless Scottish government decides to follow suit. The Government claim that 95% of all first-time buyers will benefit, with 80% not paying stamp duty at all.
The revised rates and thresholds for residential property purchases worth £500,000 or less by first time buyers will be as follows:
|Portion of consideration
|Current standard rates
|Rate for first time buyers
|Up to £125,000
|Over £125,000 and up to £250,000
|Over £250,000 and up to £300,000
|Over £300,000 and up to £500,000
The measure will benefit first time buyers of residential properties where the purchase price does not exceed £500,000 saving purchasers up to £5000. Paying no Stamp Duty reduces the upfront cost of buying a home for first time buyers. This measure is expected to lead to a small increase in house prices in the first year after implementation.
In addition to the Stamp Duty announcement, the Chancellor also announced £44bn in Government support to boost construction to meet the target of building 300,000 new homes a year by the middle of the next decade.
To help insure that homes are kept occupied, the Government announced that it will legislate for Billing Authorities to be able to levy 100% council tax premium on empty properties
Other housing measures announced in todays’ budget include a review into delays between developments being given planning permission and the subsequently being taken forward and the potential of compulsory purchase of land banked by developers for financial reasons to help accelerate house building.
More information on the Autumn budget can be found on the Government’s portal here