Over the next five years, it is estimated that the government’s flagship housing policy will help more than one million people get onto the housing ladder, according to official statistics covering the period until 30th June this year.
First-time buyers purchasing homes of £300,000 and under now pay no stamp duty at all, and those who have bought properties of up to £500,000 will benefit from a stamp duty reduction.
Financial secretary to the treasury, Mel Stride, said: “Once again, we can see that our cut to stamp duty for first-time buyers is helping to make the dream of home ownership a reality for a new generation – exactly as we intended.
“In addition, we’re building more homes in the right areas, and have introduced generous schemes such as the Lifetime ISA and Help to Buy.”
Michael McCarthy, developer at Equitas Properties, said: “Almost 46% of our new home buyers benefited from the recently introduced stamp duty reduction. This policy allowed these new home buyers reduced acquisition costs while increasing options, choice and purchasing power.
“This is part of the government’s long-term commitment to make housing more affordable.
As part of the Autumn Budget housing package, the chancellor announced at least £44bn for housing – which includes at least £15.3bn of financial support for house building over the next five years – and an aim to build 300,000 new homes a year in the areas that need it, as well as encouraging better use of land in cities and towns.
Shaun Church, director at mortgage broker Private Finance, said: “Stamp duty tax relief saved first-time buyers £125m in Q2 – making the regulation a ‘relief’ for new homeowners in more ways than one.
“Stamp duty has been the final hurdle for first-time buyers already struggling with mounting deposit costs for years. With this burden now eased or removed for most, and attractive low-rate mortgage deals for new buyers steadily trickling in, the path to homeownership is becoming clearer.”