Helping hand for first-time buyers
Thanks to changes in the Autumn Budget, a firsttime buyer snapping up this home at Oyster Close, Herne Bay, will now neatly side-step stamp duty, saving an impressive £3,250.
Chancellor Philip Hammond’s budget abolished stamp duty for first-time buyers on homes under £300,000. This would include the three-bedroom end-of-terrace house, ideal for a first-timer, on the market with the Herne Bay office of Ward & Partners, which is priced at £265,000.
The property is on a corner plot and comes with a conservatory and off-road parking.
Aldo Sotgiu, of Ward & Partners’ parent company, Arun Estate Agencies, says the changes in stamp duty will reduce the time first-time buyers take to save a sufficient deposit.
“The changes are particularly important when you consider that in 2001, 41% of first-time buyers were liable for stamp duty and this rose to 79% in 2017 putting an increasingly big burden on those buyers least able to pay,” he said.
“This would have had the effect of holding back the first-time buyer’s decision to get on to the housing ladder. This resulted in larger numbers of first-time buyers staying at home and/or taking the decision to go into rented accommodation.
“For those first-time buyers already looking for properties, the saving may allow them to purchase a property which previously was just out of their price range, so giving them some more choices to buy.
“The additional savings could result in more attractive mortgage options on the basis of, the higher the deposit, the better the rates available through lenders.
“So, the £5,000 tax saving could ultimately result in a much greater amount of money being saved by getting a better mortgage deal.
“Hopefully the feeling that the government is doing something positive will build further confidence, which is a big factor affecting customer decisions to buy.”
Research by Ward & Partners shows four out of five first-time buyers in the county are looking at homes priced up to £300,000 so will be in line for the maximum stamp duty saving, of £5,000.
For information on the Herne Bay house ring 01227 469685