First-Time Buyers Save Almost £2,500 After Stamp Duty Cut

First-time buyers in England have saved almost £2,500 each following the government’s stamp duty cut last November.

Overall, 121,500 first-time buyers have taken advantage of the cut, equating to a total saving of £284 million in stamp duty.

Analysis by estate agent Savills, reported by The Times, said this equated to about £2,385 per buyer, which would be the total duty required on a £244,250 home.

The Chancellor introduced a stamp duty cut for first-time buyers in his Autumn Statement, meaning people purchasing their first home for £300,000 or less were free of duty.

For first-time purchases worth between £300,000 and £500,000, no stamp duty is paid on the first £300,000, resulting in a reduced rate being paid.

Mel Stride, Financial Secretary to the Treasury, claimed the latest figures showed the government is “helping to make the dream of home ownership a reality for a new generation”.

Lawrence Bowles, at Savills, said: “The number of buyers claiming the tax relief grew 14.9% this quarter, showing how first-time buyers have been helping to keep the market moving.”

He added that data from UK Finance, the trade organisation for high street banks and building societies, showed that first-time buyers made up 49.6% of house purchase mortgages in the year to May, up from 36% a decade ago.

The first-time buyer figures were part of a quarterly release by HM Revenue & Customs into stamp duty receipts. It showed that duty on housing transactions delivered £1.95 billion for the Treasury between April and June, up from £1.88 billion in the first quarter, following a 4% rise in transactions to 247,800.

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