Research from online broker L&C Mortgages has revealed a shocking amount of first-time buyers don’t know about the budget's stamp duty changes or how the latest rules will benefit them.
Nearly a third don’t know if the changes will help them when they buy their first home. And a fifth haven’t reassessed the price of the house they want to buy in light of these changes, and this is simply because they don’t know the impact it will have.
The lack of education around this is also shown by the fact that 13 per cent thought they could save over £5,000 and 38 per cent said they didn’t know how much they could save if they bought their new home now.
Not quite caught up? First-time buyers don’t pay any tax up to a purchase price of £300,000, with 5 per cent levied on the portion from £300,001 to £500,000. Before the change in the previous budget in November 2017, first-time buyers in shared ownership properties still had to pay the tax even though all other first-time buyers were exempt on the first £300,000 on properties valued at up to £500,000 (check our beginner's guide to stamp duty for full details).
David Hollingworth, from L&C says ‘More needs to be done in order to ensure that first-time buyers know what is available to them. The stamp duty relief is welcomed by many who are looking to buy their first home, but the new rules could be considered complicated to someone who hasn’t been through the process of purchasing property before. In fact, the lack of understanding uncovered through our research could mean that some first-time buyers think that owning their own home is one step further away than it actually is – when in reality, a saving of up to £5,000 could be the difference in getting the required deposit together, or dropping to a lower LTV bracket.’