Budget 2017 – A Helping Hand To First Time Buyers?

Budget 2017 – A Helping Hand To First Time Buyers?

Without doubt the headline announcement from the Chancellor in respect of homes in the 2017 Budget was the changes to the stamp duty charges for first time buyers.


Philip Hammond announced the abolition of Stamp Duty for first time buyers purchasing properties up to a figure of £300,000.


In high-priced areas stamp duty payments on the first £300,000 for houses worth up to £500,000 was also scrapped for first time buyers.


It was estimated that this would mean 80% of first time buyers would now no longer be paying any stamp duty for their property.


On the flip side though the question must be what effect will this have on house prices?


With this potentially freeing up funds for first time buyers, enabling them to offer on properties that were financially previously out of reach, this could create a more congested market place thus pushing prices upwards.


So put simply will the amount saved on not having to pay stamp duty go in to the pockets of the seller. If the case, the eventual beneficiary of this policy would be those already owning properties and not those looking to get a foot on the property ladder.


Either way first time buyers may wish to take advantage of this new policy whilst property values are at their current level rather than waiting to see how the market responds.

Posted on Thursday, 23 November, 2017