Budget 2018 brings stamp duty relief for shared ownership first-time buyers for homes worth up to £500,000
Stamp duty will be scrapped for all first-time buyers with properties in shared ownership worth up to £500,000.
This stamp duty relief will be effective on all homes bought on or after 29 October and it will be backdated to November 22 2017.
Mr Hammond said in the Budget today that 121,500 first-time buyers had already benefited from the scrapping of stamp duty after it was brought in last year.
At the moment first-time buyers in England do not pay any stamp duty on the first £300,000 of a property worth up to £500,000. They they pay 5 per cent stamp duty on the value between £300,000 and £500,000.
This tax break will now be extended to first-time buyers who buy with shared ownership who previously could not benefit from this relief.
Helen Morrissey, spokesperson at Royal London said:“While the extension of this stamp duty relief will help first-time buyers to get a step on the housing ladder we would argue that more can be done to make the housing market more liquid.
"While first-time buyers can buy a home what of those further up the ladder who cannot afford to either move to a larger home to accommodate their growing families or those looking to downsize.
"We would urge the government to look at reliefs for those further up the housing ladder if we really want to free up the housing market.”
It was also announced in the Budget today that to support homeownership further and to offer more shared ownership homes, the government will be asking investors willing to collaborate with the government to send in proposals.
If you buy a shared ownership home, you pay a mortgage on a percentage of the property, to a council or housing association, and you then pay rent for the remaining share.
As you pay the mortgage off, the share you have in the home extends with the aim of you eventually owning 100 per cent of it.
Our My First Home series features first-time buyers who have managed to save enough to buy their first home.
Most recently, we talked to Leeann Whittall who saved £20,000 to buy a flat by giving up takeaways, Emma Nairn, who bought her West Yorkshire home for £10,000 under the asking price but then was faced with a £7,000 bill for repairs and Maria Clement who managed to knock off £12,500 from her first home in Cardiff.
What help is out there for first-time buyers?
Help to Buy Isa – It's a tax-free savings account where for every £200 you save, the Government will add an extra £50. But there's a maximum limit of £3,000 which is paid to your solicitor when you move.
Help to Buy equity loan – The Government will lend you up to 20 per cent of the home's value – or 40 per cent in London – after you've put down a five per cent deposit. The loan is on top of a normal mortgage but it can only be used to buy a new build property.
Lifetime Isa – This is another Government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards their first home. You can save up to £4,000 a year and the Government will add 25 per cent on top.
Shared ownership – Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25 to 75 per cent of the property but you're restricted to specific ones.
"First dibs" in London – London Mayor Sadiq Khan is working on a scheme that will restrict sales of all new-build homes in the capital up to £350,000 to UK buyers for three months before any overseas marketing can take place.
Starter Home Initiative – A Government scheme that will see 200,000 new-build homes in England sold to first-time buyers with a 20 per cent discount by 2020. To receive updates on the progress of these homes you can register your interest on the Starter Homes website.
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