In a bid to make property more affordable for first time buyers, Phillip Hammond announced today as part of the autumn budget that he will be cutting stamp duty for first time buyers purchasing homes under the value of £300,000.
Managing Sales Director at Romans, Antony Gibson comments: “This is great news for first time buyers who might be able to divert these funds to their deposit or, those that had been looking to move in about 6-9 months’ time might now be able to bring their purchase dates forward.”
This change should benefit up to 95% of first time buyers as those living in expensive areas will not pay tax on the first £300,000 of homes up to £500,000.
This is just one of the many measures the government have implemented to help first time buyers. Since Help to Buy first launched 5 years ago, the scheme has helped more than 20,000 people buy a newly-built home.
We’ve taken a look at the best options available to today’s first time buyers…
Help to buy equity loan.
Buyers contribute a minimum 5% deposit of the property’s value and the Government offer an interest free loan for 20% and the remaining 75% will be covered by a standard mortgage.
Help to buy ISA.
Designed to boost first-time buyers saving pots, for every £200 saved, the Government will add £50 up to a maximum of £3,000 (which would apply to £12,000 savings).
Savers aged 40 or under can put away up to £4,000 each year. The Government then boosts returns by 25p for every £1 saved and pay the bonus directly into the account at the end of each tax year.
Shared Ownership schemes allow you to purchase just a share of a home (between 25% and 75%) from a local Housing Association and pay an affordable rent on the part you don't own.
Right to Buy.
Council tenants with at least three consecutive years’ tenancy will have the potential to buy their home at a significant discount under the Right to buy scheme.
Coming soon in 2018, Starter Home Scheme!
Under the starter home scheme, the government has given 30 local authorities including Rushmoore Borough Council funding for starter homes. First time buyers, aged between 23 and 40, will be able to get a 20% discount off the asking price of a home in this scheme.
If you are looking to buy your first property and want to find out more about the options available to you, contact Romans on 01344 985 666.
Want to figure out how much stamp duty you may end up paying on your next purchase? Take a look at our stamp duty calculator.