Will the cut in stamp duty for first time buyers have any effect on the property market?
With the announcement of stamp duty being scrapped for first time buyers will this have any effect on the property market? For most first time buyers every little helps and can make all the difference when it comes to securing their foot on the property ladder.
However, my personal opinion is the stamp duty change may not actually have the biggest of effect on whether first time buyers can actually afford to buy or not especially in London with the prices generally well above the Â£300,000 level. Then again, the markets perception of this may have the biggest effect. There has been a lot indecisiveness from first time buyers as of late, with volatility within the market for various reasons including BREXIT, a lot of first time buyers have been sitting on their hands. Now there is more of a reason for first time buyers to buy; this perception is what is likely to boost prices with increased buying demand.
Key take away points from the Autumn Budget:
â€¢ Stamp duty to be abolished effective immediately for first time buyers up to Â£300,000
â€¢ Reduced stamp duty to up to Â£500,000 to first time buyers in London. The first Â£300,000 will be exempt and 5% charged up to the remaining Â£200,000. This equates to a Â£5,000 saving for a first time buyer buying at Â£500,000.
A property market and prices are made up of a whole host of complex factors however, a change even a small one can have a knock on effect the market as a whole.
Written by Remzi Mehmet – Director at The-Address Property Agents