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Stamp duty deal creates new buyers

THE number of first-time buyers stepping onto the property ladder in January increased by 16% compared to the month before.

A cut in stamp duty, stable house prices and continued rock-bottom mortgage rates have all helped lure more new buyers into the market.

Figures from estate agency Haart reveal first-timers accounted for almost two in five mortgages taken out in January, paying an average of £183,506 and coughing up deposits worth an average of £36,881.

In the Autumn Budget, stamp duty was abolished for first-time buyers on homes up to the value of £300,000, and for properties costing up to £500,000 there’s no stamp duty paid on the first £300,000 of the price.

This incentive covers homes in England, Northern Ireland and Wales but is only available up until the end of March, so time is running out for buyers to take advantage.

The rest of the UK pays from 2% on properties worth over £125,000.

Jasjyot Singh, mortgages director at Halifax, said: “The changes to stamp duty charges are a real boost for those hoping to take their first step on the property ladder.

“Those that do manage to purchase their first home are on average £651 a year better off owning versus renting.

“The numbers getting on the housing ladder has now exceeded 150,000 for the third time in four years – a level of momentum not seen since before the financial crisis.

“We lent over £10billion to help people own their first home last year.”