Stamp duty relief for first time buyers

Last week Chancellor Philip Hammond abolished stamp duty for first time buyers paying under £300k. For West Londoners the stamp duty relief will most likely apply to first time buyers purchasing at a level of up to £500k; they are exempt from paying stamp duty on the first £300k of their purchase. What does this mean for our local West London property market?

John Horton says, “The Zone 2 West London property market is challenging and expensive so any stamp duty incentive for first time buyers is most welcome. Two years ago we had significantly more buy-to-let investors purchasing properties across Hammersmith, Shepherds Bush and Chiswick – these numbers have decreased year on year. While jumping on the property ladder has never been a straightforward task for first time buyers in West London, I predict that the Chancellor’s announcement will galvanise this group into action. It will also provide the motivation for property owners to list which will result in a wider choice of properties for sale up to £500k.”

Chiswick Director Paul Cooney takes a whole-market view stating, “The Chancellor’s announcement is a much-needed sprinkle of positivity in what has been an uncertain marketplace. First time buyers are the linchpins of the property market as a whole – without them, the upward chains aren’t viable. With a slow down in buy-to-let investment and thousands of pounds in their pockets, near-perfect conditions are now in place for first time buyers to snap up their first ever property purchase.”

Horton and Garton Sales Negotiator Phil Coombes is a first time buyer. He says, “As a first time buyer currently purchasing a one bedroom flat with my girlfriend I am delighted with the Chancellor’s announcement to offer ‘stamp duty relief.’ We are in the same boat as many other Londoners who are paying rent while saving for a deposit and stamp duty to purchase our own home – we’re also trying to have a decent quality of life. This announcement will help us save approximately £5k and should hopefully send a message to other Londoners who are hoping to make the jump from renting to owning – the aspiration can be a reality.”

Other industry figureheads agree that the stamp duty relief will stimulate the property sales market. Mark Hayward, Chief Executive of NAEA Propertymark said, “The announcement will have a positive impact on the market. It’s a smart move to ensure the dream of homeownership for young people can become a reality and will help buyers across the UK, including London and the South East where property prices are higher.”

Miles Shipside, Commercial Director of Rightmove, says, “First time buyers should think about acting quickly to take advantage of this stamp duty ban, before the extra demand it creates pushes up prices and starts to eat away at the extra cash this Stamp Duty exemption will free up. The government has already put buy-to-let landlords on the back foot with its 3% Stamp Duty surcharge, so this extra advantage of no stamp duty gives first time buyers an extra edge.”

Are you a first time buyer looking to get on the property ladder in London?  The property experts at Horton and Garton are available to talk to you about it. Contact us today.

Philip Hammond announcing the 2017 budget