There is some good news for first-time home buyers, as Stamp Duty is lowered in the Autumn Budget.
This will apply to England and Northern Ireland. Wales will also benefit from this announcement but only until April 2018 when the Welsh Government’s new Land Transaction Tax is to be introduced.
Stamp Duty is an amount of money that a new house-buyer must pay within 30 days after completion of the purchase. Non-payment of the Stamp Duty Land Tax may result in being charged penalties and interest by HMRC.
For those looking to buy their first house, they will pay no Stamp Duty at all if the house costs less than £300,000.
However, this may not make much of a change for the first-time buyers of Sheffield. Data shows that across the 13 housing market areas of Sheffield, the average house price in the city is £145,000.
The Stamp Duty before the recent Budget announcement for property below £125,000 was £0 already, even for those that have previously owned property. Therefore the recent updates are unlikely to affect most buyers in Sheffield, especially first-time buyers who are likely to be spending even less.
Furthermore, the most expensive house price on average is £269,850, which is in the South West of the city. People spending this much would have had to pay £3,492 in Stamp Duty before the Autumn Budget, but the recent change brings a great benefit for first-time buyers spending over the £125,000 mark, and under £300,000, as they will also now pay no Stamp Duty.
People looking for a £300,000-£500,000 first house will not pay any Stamp Duty on the first £300,000, but based on the majority of house prices in the Sheffield region, this is not likely to matter to most local first-time buyers.
Chancellor Phillip Hammond’s announcement on Wednesday 22nd November means that Stamp Duty will be cut for 95% of first-time buyers, with 80% paying none at all.
This is especially bright news for young people, as it will now be easier to get on the property ladder.
Mr Hammond encouragingly said: “This is our plan to deliver on the pledge we have made to the next generation that the dream of home ownership will become a reality in this country once again”.