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Topics: Budget 2010
Chancellor Alistair Darling has doubled the threshold for stamp duty to £250,000 for first time buyers (FTBs) in an effort to boost recovery in the housing market.
The giveaway means residential property buyers will pay no tax for house purchases below £250,000.
The stamp duty cut is similar to Tory policy, so will likely stay in place whoever wins the General Election.
In his Pre-Budget Report in December, the Chancellor decided not to extend the stamp duty holiday, returning it to the £125,000 limit. Some analysts claimed the move halted the recovery in the housing market.
The Council of Mortgage Lenders has estimated that if the £250,000 threshold had existed in 2009, 92% of first-time buyers and 69% of movers would have been exempt.
The cut for first-time buyers will be paid for by a hike in Stamp duty to 5% for properties worth more than one million pounds.
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STAMP DUTY
Could anyone tell me if this applies to me, I am a first time buyer but am buying a property with my girlfriend who isn't so would we be able to take advantage of this?
Posted by: Steven
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STAMP DUTY
As much as I would not like to dampen his parade, I do not think that the increase in stamp duty level for FTBs wil make a lot of difference until lenders reduce the amount of deposits required bringing in a higher loan to value. If someone has to save a 15% deposit just to get on the housing ladder a further 1% stamp duty will not make a major difference to the client buying the house, other than possibly bringing the purchase forward a few months.
Posted by: TERRY ARCH