Stamp duty holidays saves first time buyers £319 million

The two year exemption, which comes to an end on 24 March this year, offers first time buyers savings of up to £2,500 and is estimated to have benefitted roughly 170,000 new home owners.
 
Santander Mortgages is urging first time buyers to act fast if they still wish to take advantage of the tax holiday, after which first time home owners can expect to pay 1% tax on property purchases between £125,000 and £250,000 and 3% on purchases over £250,000.
 
‘Getting a foot on the ladder is tough task for first time buyers against the backdrop of a sluggish property market. Despite the availability of some very affordable mortgage deals, that extra £2,500 can make a huge difference to a financially stretched first time home buyer,’ said Phil Cliff, director of Santander Mortgages.
 
‘The end of the stamp duty tax holiday is looming so we’re urging new buyers who are in the process of purchasing a home or even those hoping to do so in the immediate future to act fast and make sure all parties, including solicitors and sellers are well aware of the deadline,’ he added.
 
The Council of Mortgage Lenders (CML) has said that it expects first time buyer transactions to pick up as the concession end date looms nearer. ‘For those who miss the deadline, the credit constrained environment we find ourselves in means first time buyers will increasingly have to fund stamp duty from their back pockets so the end of the concession will have a real impact,’ said CML chief economist Bob Pannell.