Philip Hammond’s 2017 autumn budget saw the wake of some big changes for the property market that came into place on the 22nd November.
Stamp duty and first-time buyers
The government placed an emphasis their intention to fix the broken housing market and make it possible for the younger generation to buy a home.
The real breaking news story of the budget was Hammond’s announcement that stamp duty is to be waived for first-time buyers purchasing properties up to the value of £300,000. This will mean 80% of first-time buyers will not have to pay any stamp duty at all. This will affect buyers in England, Northern Ireland and Wales (until the end of March), but not Scotland. HMRC have a useful tax calculator here.
For houses costing £500,000, stamp duty now totals at £10,000 rather than the hefty pre-budget rate of £15,000.
It is thought that the plans will benefit 95% of all first-time buyers, with 80% not paying any stamp duty at all.
Funding for new homes
The Government hopes to raise its housing supply to the highest levels since the 70s, aiming to reach 300,000 per year by the mid-2020s.
It aims to do this by making £15.3 billion of financial support in over the next five years, bringing total support to at least £44 billion over this period.
They announced their hops to make planning reforms that would free up more land and make it available for future housing. This includes the compulsory purchase of any land banked by developers for financial reasons.
With this comes £204 million of funding for innovation and skills in the construction sector, which includes the training of a new workforce to build these homes.
Help to buy scheme
The controversial scheme is to be extended, with an extra £10bn to be put into it, extending it to 2021. This will further assist first-time buyers get on the property ladder.