PHIL’S GREAT STAMP DUTY CUT SWINDLE

Experts warn it’ll raise prices Watchdog says few benefit

PHILIP Hammond’s stamp duty cut has been savaged by economic experts who warned it would do nothing to help young home buyers – and will push up house prices.

The £3.2billion move will mainly benefit existing homeowners.

Despite calls on the Treasury to solve the housing crisis, the Budget measures will not result in a single Government-built home.

But the Chancellor claimed other moves would lead to 300,000 new builds a year by 2025.

He said: “It is our plan to deliver on the pledge we have made to the next generation that the dream of home ownership will become a reality in this country once again.”

At the heart of his 62-minute statement was scrapping stamp duty for first-time buyers on homes under £300,000. Those buying properties for between £300,000 and £500,000 will be exempt on the first £300,000, and pay 5% on the rest.

The cut, which came into effect immediately, was seen as a desperate attempt to win back younger voters who turned to Labour at June’s general election. The Government says buyers will save an average of £1,660 and it will benefit 95% of firsttime buyers. But they will help just 3,500 people get on the housing ladder, according to the Government’s own economic watchdog. The Office for Budget Responsibility predicted prices would rise by 0.3%. “The main gainers are people who already own property, not first-time buyers,” it warned.

Speaking for “generation rent”, Akshay Ruparelia, 19, who runs Doorsteps.co.uk, the 15th largest estate agency in Britain, said: “This will only mean buyers saving less than £2,000 on an average priced house which is a drop in the ocean when they are struggling to save a deposit. Mr Hammond has missed another opportunity to help young people trapped in rented homes by sky high property prices.”

National Association of Estate Agents chief executive Mark Hayward said demand for first-time buyer properties would surge, “and if we don’t have the supply it will push prices up”.

New Economics Foundation chief Miatta Fahnbulleh said: “The gains will be felt by sellers – and of course, it will build precisely none of the affordable homes we need.”

Shelter housing charity boss Polly Neate said: “This will only help a very small number of people who have already been able to save enough for a deposit.”

Mr Hammond is spending £44billion on housing in total. But Shadow Chancellor John McDonnell said: “There were no measures to directly increase house-building.”

The Chancellor also pledged £28million for Kensington & Chelsea to fund the Grenfell Tower aftermath.

But he resisted a 103,000-strong Labour petition, backed by the Mirror, for £1billion to fit sprinklers in all tall social housing blocks. Only “essential” safety measures would be funded.