Stamp Duty relief saves first-time buyers £426 million
More than 180,500 first-time buyers have saved on purchasing their first home since the introduction of Stamp Duty Land Tax relief, new figures reveal.
The data, published by HM Revenue & Customs (HMRC), shows that the estimated total amount saved by buyers is more than £426 million.
The relief, introduced in November 2017, can be used when buying a residential property where the purchase price is no more than £500,000 in England and Northern Ireland, providing the purchaser does not own any other properties and intends to use it as their main residence.
Under the scheme, no Stamp Duty is due on properties up to the value of £300,000 (£500,000 in London) and tapered on any amount between £300,000 and £500,000 at five per cent. This gives a maximum saving of up to £5,000 for each first-time buyer.
And as of last month’s Autumn Budget, the relief was extended to first-time buyers purchasing through approved shared ownership schemes who choose to pay Stamp Duty in stages, rather than on the market value of the property.
It is notable that this has been retrospectively applied to eligible property transactions since last November.
In total, the data shows that the relief was claimed in more than 58,800 transactions between July and September this year – an increase of 12 per cent compared to the previous quarter.
Commenting on the figures, Mel Stride MP, Financial Secretary to the Treasury, said: “These statistics show that the government was right to offer a helping hand to first time buyers. Without this investment, more than 180,500 new homeowners may have struggled to get onto the property ladder. Maintaining the status quo was not an option.”