CASE STUDY

YOUNG professionals Sophie Diaz and Heinrich Schroder could save £5,000 when they buy their first home as a result of the cut in stamp duty.

The couple – who currently rent separately in London – have been looking to buy their first property together. However they were put off by ‘extortionate’ stamp duty fees and the prospect of finding a large initial deposit.

Their budget is up to £ 00,000, at which price stamp duty would have previously set them back £10,000.

But the Chancellor’s abolition of stamp duty on the first £300,000 of the property’s value now means the fee would be halved – making it easier for them to get on the housing ladder.

Miss Diaz, 26, who works as an assistant underwriter at Zurich, said: ‘We knew there would be something in the Budget to help first-time buyers but we didn’t expect this much of a help.

‘It will make a huge difference and it is a relief knowing we don’t have to pay the extra tax on top of the house price.

‘We’re fed up of wasting money on rent and now that the initial buying cost has been cut we’ll hopefully be able to buy somewhere soon.’ Mr Schroder, 27, a financial manager at Deloitte, added: ‘It’s great news. The cuts make it a lot more affordable for first-time buyers, mostly young people like ourselves.’

Miss Diaz currently pays £715 per month, excluding bills, for a room in a three-bedroom flat in Tooting, South West London.

Meanwhile Mr Schroder is renting a room in a flat in East London, where he pays £750 with bills included.

They have been looking for a suitable place to buy for over six months. However they had even begun to consider moving abroad as they were finding house prices in London prohibitively expensive.

Mr Schroder added: ‘Your first property is a good investment and now we can look forward to properly searching for somewhere knowing that we’ve been given a bit of a break.

‘We love South West London – but we might also look in places where the present costs are a bit lower but where there is a bit of growth predicted.’