• The Treasury netted £3.3billion from stamp duty receipts on property purchases in the final quarter of 2019, marginally lower than Q4 2018 (https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/862381/Quarterly_SDLT_2019Q4_Main.pdf)
• Over 62,000 first-time buyers enjoyed £154million in stamp duty relief in Q4, the highest figure since its introduction in November 2017
• Approaching half a million first-time buyers have benefitted from stamp duty relief to the tune of £1.1billion
• All eyes on the Budget and whether Boris Johnson will take the axe to stamp duty
Tom Selby, senior analyst at AJ Bell, comments:
“Approaching half a million first-time buyers have saved over £1.1billion in stamp duty since the relief was introduced in November 2017, representing a saving of about £2,360 each. The tax break means those who buy a first home worth £300,000 or less pay no stamp duty, while those buying a property worth up to £500,000 pay a lower rate.
“First-time buyer relief has clearly been seized upon by younger people and, when coupled with the £1,000 a year bonus available through the Lifetime ISA and the Help-to-Buy initiative, represents a serious boost to those looking to claw their way onto the property ladder.
“Despite these efforts, the substantial deposits required to buy a property in 2020 – with eye-watering figures approaching £30,000 now the norm - mean for many owning their own home remains a far-flung fantasy.
“All eyes now turn to the Budget on 11th March, with a new Government potentially wanting to set out a new agenda across a range of policy areas – including for young people and aspiring homeowners.
“If Boris Johnson is keen to burnish his popularity still further following his resounding election win, he could be tempted to take an axe to stamp duty or extend the reliefs already available.
“Another option would be to put rocket boosters underneath the Lifetime ISA, perhaps by increasing the bonus available, expanding the eligibility criteria or reducing the exit penalty for non-eligible withdrawals.”
