Stamp duty scrapped for many first-time buyers

by Aaron Strutt

Nov 22 2017

Chancellor Phillip Hammond has scrapped stamp duty for many first-time buyers during the budget statement.  

First-time buyers will no longer pay stamp duty on the first £300,000 of a home costing up to £500,000. The charge will be 5% for properties between £300,000 and £500,000.

Aaron Strutt, product director at Trinity Financial, says: “Many borrowers are struggling to get on the property ladder so this move will help to reduce the upfront costs. The banks and building societies are offering some impressively low mortgage rates and typically require a minimum 5% deposit.”

The move was designed to make it easier for first-time buyers to get on the property ladder, although the Office for Budget Responsibility has said it expects the moved to increase house prices by 0.3%. The London School of Economics recently released a report calling for changes to the stamp duty tax system.

The tax changes apply in England, Wales and Northern Ireland, although there is no planned change for buyers in Scotland. To calculate your stamp duty bill click here.

Call Trinity Financial on 020 7016 0790 to secure a first-time buyer mortgage