Budget 2017: Stamp duty officially axed for first time buyers for properties worth up to £300,000
Chancellor Philip Hammond just committed to a total of at least £44bn capital funding, loans & guarantees to support the UK housing market. The boost of the UK housing market via a wide-range package that includes the abolishing of stamp duty, house building, and policy changes for developers has been the heart of Budget 2017.
The long-anticipated slash of stamp duty has now become reality for first-time buyers buying a home worth up to £300,000. This will save £1,660 on the average first-time buyer property. According to Mr. Hammond, this means that 80% of first-time buyers will not pay stamp duty at all.
This is part of Hammond’s and the Conservative Party’s ambition to revive the home-owning dream in Britain. Inside London, the dramatic policy change will apply to the first £300,000 of homes worth up to £500,000, Mr. Hammond said, a cut of up to £5,000. There will be no relief for those buying properties over £500,000.
Mr. Hammond characterized this as an ambitious plan to tackle the housing challenges by enhancing the supply of skills, resources, and building land to create the financial incentives necessary. Funds for house-building will include a £630m small sites fund, £2.7bn to more than double the Housing Infrastructure Fund, £400m for estate regeneration, £8bn of new financial guarantees to support private house-building and an additional £34mn to develop construction skills, Mr. Hammond said.
During her visit to a housing estate in north London, Mrs. May stated that she would personally tackle the increased housing market demands by building affordable and enough homes.
Property experts welcome the cut in stamp duty for first-time buyers as a real sign of good intent but fear that it will enhance the property market momentarily. The current challenges of the UK housing market are the lack of affordable housing options in key areas. Our own in-house property experts team predicts that the plan to boost the housing market along with a scrap of stamp duty will attract international investors who are looking to upsize fast and smartly by securing desired properties in London.
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