Philip Hammond today permanently abolished Stamp Duty for first-time buyers purchasing properties up to £300,000 and in high-priced areas on the first £300,000 of houses worth up to £500,000. The change kicked in at one minute past midnight today, says the Treasury briefing paper. It says: “To ensure that all first-time buyers purchasing a house on Budget day benefit and to avoid disruption, the relief will take effect from Budget day (00:01 hours November 22nd).”
With todays welcome news from the budget permanently abolishing stamp duty, we take a quick look at what different generations have had to spend on housing costs in the UK over the years;
- Research by the Resolution Foundation think tank has found that young people are spending three times more on housing than their grandparents did.
- The post war baby boomers now benefit from record levels of outright ownership, but there are now as many young families (aged 25–34) living in the private rented sector as owning a home or living in the social rented sector combined (36%).
- At the age of 30 millennials spend 23% of their annual income on housing costs, compared to those born 1926–1945 who, aged 30, spent just 7%.
- While the number of mortgage loans issued to first-time buyers over the past year is at its highest level since pre the financial crisis, the average age of a first time buyer looks set to continue to rise over the coming years.
First time buyers are the ones who often stimulate the rest of the housing market so here at Newton Fallowell we believe this is good news for everyone considering selling a property and especially those buying for the first time.
If you are a first time buyer and would like to research the costs involved with moving, our specialist mortgage adviser Rachel Cornes is on hand for a chat. Call her on 01509 610710 to arrange a convenient time.