Tue 30 Oct 2018 View all news articles
Stamp duty has been abolished for all first-time buyers of shared ownership homes with a market value of up to £500,000. Those who bought a shared ownership property within the past year will still benefit, as the policy is being applied retrospective from the 2017 Budget.
First-time buyers already do not have to pay stamp duty on properties worth up to £300,000, so the relief would be on anything above this.
Stamp duty rates in England and Wales:
Homes worth up to £125,000: 0%
£125,001 to £250,000: 2%
£250,001 to £925,000: 5%
£925,001 to £1.5m: 10%
There is also a 3% surcharge for people who own more than one property, while first-time buyers do not pay any stamp duty on homes below £300,000.
This could encourage more first-time buyers to buy a home under shared ownership, helping keep prices stable across the sector.
The Help to Buy scheme is also being tweaked. The scheme provides a Government-backed loan to people who want to buy a new-build home but cannot afford the required deposit.
It was announced today the scheme is being extended from 2021 until 2023, and will only be available to first-time buyers between these two years.
Budget documents said housing market conditions have improved since 2013, with a growing number of low-deposit mortgages available to help first-time buyers.
Source: i News
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