Stamp Duty Changes: Autumn Budget 2017
In the Chancellors 2017 November budget announcement, we saw the abolishment of stamp duty for first-time buyers purchasing a house worth up to £300,000. To make it easier for buyers in London and in other expensive areas, the first £300,000 of a £500,000 property purchase will be exempt from stamp duty and the remaining £200,000 will incur a 5% fee. Up to 95% of first time buyers will see a stamp duty cut, while 80% of buyers will pay nothing at all. The directors at Newcastle property agents, Walton Robinson have their say on the new stamp duty changes and how it will impact the North East as well as the UK.
(L-R: Mark Walton, Richard Ponton, Jaimie Lawton)
Mark Walton, Managing Director at the Newcastle property consultancy, said “At Walton Robinson, we welcome the changes in stamp duty as most of our buyers are buying for the first time, however, market intervention always has repercussions. The stamp duty changes will now be a catalyst for more demand in “first-time buyer” homes. While the demand won’t be met overnight, for now, we expect to see a rise in house prices while we wait for more “first-time buyer” homes. Tenants will become first-time buyers sooner than they originally planned as they will want to take advantage of this opportunity. Although they will not be paying stamp duty, they’re likely to pay more money for the same property so it remains to be seen if buyers will completely benefit. The main beneficiaries are likely to be the second movers, house builders, developers and professionals involved in the house building and selling process.”
Richard Ponton, Investment Director, added: “The zero SDLT (Stamp Duty Land Tax) for purchases for first time buyers up to £300,000 will certainly not make buying your first home any harder, but it does not address the main problem of saving a sufficient amount for your deposit, which is hampered by high living costs relative to salaries. Encouraging more purpose-built rental schemes should help create greater diversity and competition in the rental market, helping to maintain high rental standards for those happy to avoid the financial commitment of buying, but also help keep rents at levels that allow some income to go towards saving for a deposit.”
Jaimie Lawton, Director at Walton Robinson commented: “The changes in Stamp Duty is a positive move for First Time Buyers with various parts of the country benefiting more from this than others. The new Stamp Duty change does not eliminate the biggest issue for First Time Buyers, which is the large deposit required in a first-time purchase. If house prices increase further because of the changes, it’s even more important for the Government to fulfill their pledge to build more new homes and provide the relevant funding and guarantees to support the housing market in the coming years.”
If you’re looking to buy or sell contact the experienced sales team at Walton Robinson on 0191 649 7008 or email firstname.lastname@example.org to book a free valuation.