Stamp Duty Change a Huge Boost For London’s Property Market
The recent news in the budget that stamp duty for all first-time buyer purchases up to £300,000 has been abolished is a very welcome move.
For conveyancing solicitors here is London, the news is definitely something that has been a great source of conversation since the announcement.
For those of you unaware, the measure will also apply on the first £300,000 of a home in the highest-price areas, meaning first time buyers here in the capital will not pay the duty on the first £300,000 on purchases up to £500,000.
When chancellor Philip Hammond made the statement he said it means that there is no stamp duty at all for 80% of first time buyers, whilst 95% of first-time buyers will see at least a cut in the amount of stamp duty they pay.
For the London property market, the bold move by the Government is a much-needed tonic. After all, London and the South east is the most expensive place to live in the UK and also one of the most expensive places to live in the world.
For young people, no matter how well they are paid, trying to get a foothold on the property ladder in the Capital is incredibly difficult, so it makes sense to support this move.
According to the Treasury, maximum saving to buyers will be up to £5,000 with average savings but the numbers making those savings will be very small.
With such a move there are critics, who have said the changes will not help those that really need it. For instance, The Office for Budget Responsibility says the change will inflate house prices even further.
It has condemned the move saying that those who will benefit most will be those who already own property, rather than first-time buyers.
It is the nature of budgets that there will be those who question changes, but in a city where demand is so high there will always be heated discussions.
London and the South East and its allure as a home for not only those from the UK, but many making their homes in Britain for the first time, will always mean supply struggles to keep up. It’s not an easy task trying to get the balance right.
There is no magic wave of the wand, which will remedy our country’s housing ills. As long as Britain remains a buoyant place to live, this will be the case.
We hope though many more will now find a home as a result of the chancellor’s move. Of course, also please bear in mind if you need help with the legal process of moving home, we at Pindoria as one of London’s top conveyancing solicitors are happy to help.