Categorized | International

Forty Percent of UK First Time Buyers Took Advantage of Stamp Holiday

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According to recent reports, first time homebuyers benefitted most from the stamp duty holiday. The stamp duty holiday raised the exemption threshold to two hundred and fifty thousand pounds for the past two years.

 

With the increase in the threshold, roughly ninety-five percent of first time homebuyers qualified for the exemption. That accounts for nearly four hundred thousand buyers in the last two years.

 

The stamp duty threshold has now been reduced to its standard rate of one hundred and twenty-five thousand pounds. That reduction will lead to approximately forty-five percent of first time homebuyers paying the stamp duty from this point forward.

 

The greatest impact of the increased stamp duty threshold was seen in Greater London, where nearly seventy percent of first time homebuyers found themselves exempt from paying the stamp duty. With the return to the standard stamp duty threshold, only four percent of first time homebuyers will qualify for the exemption.

 

In other parts of the United Kingdom, the majority of first time homebuyers will not have to pay the duty, even after the reduction. Their exemption is likely due to the massive declines that such areas have seen in housing prices.

 

The recent stamp duty holiday was not the first that the country has seen. In fact, the exemption threshold was raised to five hundred thousand pounds in 1997.

 

Although some have called upon the government to extend the stamp duty holiday again temporarily, the government has showed no signs or interest in considering that possibility.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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