Stamp duty cut rolled out to shared homes
First-time buyers of shared-ownership homes will be exempt from stamp duty under plans unveiled in the Budget.
The Chancellor said the exemption would also be backdated to include all shared-ownership homes bought since the last Budget in November 2017.
Shared ownership is meant to help young people on to the housing ladder.
The system lets homeowners buy a share of a property of between 25pc and 75pc. The buyer pays off a mortgage on their share and pays rent on the rest.
In the 2017 Budget Mr Hammond abolished stamp duty for firsttime buyers on homes worth up to £300,000.
Those who buy homes worth between £300,000 and £500,000 receive partial stamp duty exemption. However, many shared-ownership homes did not benefit from the original stamp duty exemption for first-time buyers.
This is because shared-ownership buyers have a choice of how to pay stamp duty. They can pay it on the total value of their property in one lump sum, or spread the payments over time. Most choose the latter, as it means a lower bill at the outset. They simply pay stamp duty on the part of the house they own, then pay more as they increase their stake.
However, the first-time buyer stamp duty exemption announced in 2017 did not apply to those who chose this option.
The Government has now corrected this, in a move that will be welcomed by people trying to get on the property ladder such as Augusta Connor, Vicki Laskier and Lydia Walder from Hertfordshire.
The stamp duty exemption has saved £284m since it was brought in and has been used in the purchase of 121,500 homes.
Augusta Connor, Vicki Laskier and Lydia Walder aim to get on the property ladder