Stamp Duty “Giveaway”in the Budget: Eyebrows Raised, But Then Recede
First the leak or is that rumour, that Stamp Duty will be abolished on purchases of up to £250,000: Then the reality.
The Chancellor Alastair Darling in his budget speech announces a temporary 2 year “stamp duty holiday” for that endangered species that is the first time buyer. But more pertinently, he also announced a permanent increase in Stamp Duty to 5% for purchases above £1,000,000.
And who is a first time buyer. Well, not someone who has ever bought before in their whole life or anywhere in the world.
Nor, is a first time buyer someone, who although qualifies under the first test, and has the misfortune to purchase with someone who has failed that same test such as a parent, partner or friend.
And don’t think as a first time buyer you will get the exemption on your holiday home as well. It applies only to your main or principal residence.
The Chancellor estimates that 9 out of 10 first time buyers will not now pay Stamp Duty.
This may be so, but as First Time Buyers have been rarer than hens’ teeth since the Recession took hold, that is not a high number.
Nevertheless, one must not be churlish, and if the perception is created that first time buyers must act now, this will lead to a boost to the Housing Market in the UK.
The feature of this recession has been the unwillingness of Banks and Building Societies to lend to anyone without at least a 30% deposit.
This has been gradually easing.
News from HSBC announced just after the Budget, that they have introduced a new mortgage product which requires only a 10% deposit, is more likely to resurrect the market than the Chancellor’ s “budget giveaway”
If you are a first time buyer and instruct us online, we can also give you the chance to have your Solicitor’s fees refunded. Click on our special World Cup promotion
Image via Flickr