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Stamp duty boost for first time buyers

Stamp duty boost for first time buyers

Category: Mortgages

Updated: 24/03/2010
First Published: 24/03/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
First time buyers have been given a welcome boost, after a new stamp duty holiday was revealed in today's Budget.

Alistair Darling confirmed that first time buyers will pay no stamp duty when buying properties worth up to £250,000.

The initiative is to last both this year and next, and is a move that the Chancellor claims will see nine out of ten first time buyers pay no stamp duty at all.

In order to fund the initiative, the duty payable on properties worth more than £1 million is to rise to 5%.

The move should ensure the property market continues to recover from the spectacular downturn it suffered during the credit crisis.

The last stamp duty holiday, which saw the threshold temporarily raised from £125,000 to £175,000 for all property transactions, came to an end at the end of December 2009.

"For thousands of first time buyers the dream of getting onto the property ladder was slipping out of reach," said Peter Bolton King, chief executive of the National Association of Estate Agents.

"This announcement has added a new rung to the property ladder, one within reach of thousands of young families.

"We still believe that more reform is needed and there is more work to be done, but this is a good first step - a major victory for first time buyers."

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