UK abolishes stamp duty for all first-time homebuyers under £300,000

2017-11-22T14:38:00-05:00

The government will abolish stamp duty for all first-time homebuyers on homes under £300,000 in a move that will save home purchasers up to £5,000, but the government's spending watchdog warned it could push up house prices.

Philip Hammond, the conservative Chancellor of the Exchequer, has announced stamp duty changes in the 2017 Budget that would abolish the tax for all first-time buyers on homes under £300,000. The move is seen as an effort by the ruling Conservative party to win over younger voters, many of whom are struggling to get on the property ladder.

The treasury expects the change to amount to an average tax cut of £1,600 for a million first-time buyers over the next five years. However, according to analysis by the Office for Budget Responsibility, the cut will lead, in the medium and long term, to house prices rising well beyond the costs of the initial savings. While intended to help those enter the housing market, the watchdog's analysis found that existing homeowners will be the ones to come out as the big winners.

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UK abolishes stamp duty for all first-time homebuyers under £300,000