90 Per Cent Of First Time Buyers Save On Stamp Duty
In an attempt to provide a boost to the housing and home owner loan market, the government introduced holiday on stamp duty payments for first time buyers, who were purchasing a property for under £250,000, back in March 2010.
Since that time, it is estimated that around 9 out of 10 first time buyers have managed to save money on their loan and house purchase costs through the scheme, which has prompted calls for the holiday to be extended beyond the current deadline date of March this year.
According to figures provided by the bank HSBC, there have been a total of 331,899 first time buyer home owner loans taken out between the start of the stamp duty holiday on 24th March 2010 and the end of last year. 89 per cent of these purchases were for properties valued at under £250,000 and therefore were free of stamp duty.
So far, banks and building societies have typically seen an increase in first time buyer loan applications of around 20 per cent above normal figures, as people rush to have their loan approved and purchase complete before the end of the holiday.
It has been estimated that around half of all first time buyer loans have saved money on stamp duty on loan amounts of between £125,000 and £250,000, which has saved first time buyers a total of somewhere in the region of £319 million in additional costs on top of their loan, since the holiday began.
Phil Cliff of Santander home owner loans said “Getting a foot on the ladder is a tough task for first time buyers against the backdrop of a sluggish property market.”
“The end of the stamp duty holiday is looming so we’re urging new buyers who are in the process of purchasing a home or even those hoping to do so in the immediate future to act fast and make sure that all parties are well aware of the deadline.”
