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.

What is DealMakerz Prime?

In depth stories

Want to know the story behind Britain's latest property mogul? Why a company is going bust? Our coverage goes beyond run-of-the-mill news on key real estate issues.

High powered community

Our subscribers are made up of the most influential Founders and CEO's in UK property. Gain a competitive edge and get informed - read what they read.

Exclusive guest articles

Understand exactly what the most senior figures in UK property are thinking. Exclusive opinion articles from powerful real estate influencers that move markets.

You might also like