Over the Covid-19 pandemic, an effort to keep the property market stimulated and active was made, including a stamp duty holiday.
This was good news for a wide range of people. But how exactly did this impact buyers, especially first-time buyers, and what can we expect now that the stamp duty holiday has come to an end?
What Is Stamp Duty Holiday?
The stamp during holiday meant that buyers paid no tax on the first £500,000 of their property price. During this time, approximately 1.3 million buyers took advantage of this. In this buyer’s market, many asked “when does the stamp duty holiday finish?”, and found their answer when it ended on 30th June 2021.
How The Market Reacted
Understandably, everyone wanted to take advantage of the nearly year-long stamp duty holiday. This meant that, rather than entering a slump as one might expect during a worldwide crisis, the property market became rather hectic, with houses selling with impressive speed. With such a high threshold, more people than ever were considering buying their dream homes.
Do First-Time Buyers Pay Stamp Duty?
With the end of the stamp duty holiday, first-time buyers will regain their competitive advantage, giving them less competition in the property market. From the 1st of October, only first-time buyers will be able to get stamp duty relief.
How Much Is Stamp Duty For First-Time Buyers?
First-time buyers will be able to get stamp duty relief on properties that are valued at less than £300,000, rather than the stamp duty holiday cut off of £500,000. This means that first-time buyer stamp duty relief reduces the amount of competition that buyers can face from buy to let investors.
During this window, 56% of home buyers aged between 25 and 34 have rushed their purchase to take advantage of this. However, this has led to some young buyers exceeding their moving budget, leaving them with debt.
Meanwhile, some developers are offering to pay stamp duty after the deadline in order to sell their properties.
Get In Touch
Whether you are wondering “does stamp duty apply to first-time buyers” or you have a different query regarding purchasing a property, you need to seek out the right legal support. Bowsers Solicitors is on hand to help you understand the challenging process of buying your new home – get in touch to find out how we can best help you.
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