HMRC has today issued the latest stamp duty figures, which show:
• First-time buyers have saved £426m in stamp duty since November 2017
• 80% of first-time buyers paid no stamp duty
Laura Suter, personal finance analyst at investment platform AJ Bell, comments
“The latest stamp duty figures show that 180,500 first-time buyers have used the Government’s stamp duty relief since it was introduced a year ago, saving a total of £426m in stamp duty. The average first-time buyer saved £2,360 in stamp duty, with almost 80% of first-time buyers in the past quarter paying no stamp duty, and a fifth of all property buyers claiming the relief.
“Undoubtedly this has provided a leg-up for some buyers, enabling them to save up to £5,000, and has meant that they can get on the property ladder sooner. First-time buyers can couple this tax break with the £1,000 a year Government bonus from the Lifetime ISA and other initiatives such as Help to Buy, in order to boost their chances of getting on the ladder.
“However, the problem remains that the amount of deposit first-time buyers need, particularly in pricier areas of the country, is still a massive hurdle for many. This is shown by the fact that the average first-time buyer in the UK is now 30-years-old and has an annual salary of £42,000, while the average London buyer is 32 and has a whopping £70,000 household income*.”
* Figures from the latest UK Finance release: https://www.ukfinance.org.uk/wp-content/uploads/2018/11/First-Time-Buyers-Affordability-London-Q3-2018-Infographic.pdf