Graysons Solicitors In The Press

First time buyers must act quickly to save stamp duty costs

Although we all know that the housing market remains pretty sluggish at present; first time buyers may wish to try to accelerate matters if they want to take advantage of the current exemption from paying 1% stamp duty on properties under £250,000, as the government is scrapping the exemption on 24th March 2012.

Naturally there will be a lot of disappointment regarding this move, but the government insists that the relief is “ineffective” and has failed to get more people on the property ladder in the first instance.    Paul Smee, director general of the Council for Mortgage lenders is opposed to the withdrawal saying "While the concession may not have stimulated additional demand, it was a significant help to home-owners entering the market and its removal runs counter to the themes of the new housing strategy.”

Jenna Hamilton, Conveyancing Executive at Graysons WE says “Currently, any purchase of a property for less than £125,000 will not attract a stamp duty payment. In March 2010, the government extended this relief to £250,000 for first time buyers in a bid to get the property market moving again. This has proved extremely helpful to our first time buyers who have saved up to £2,500 under the scheme, however the government plans to end the scheme on the 24th March 2012. There is always the chance that the government will review its decision and extend the exemption, but as that is probably unlikely, first time buyers will need to act quickly and get the ball rolling to take advantage of the potential saving.  The rates for properties of other values will remain the same at 3% for properties from £250,000 up to £500,000, 4% for properties up to £1 million and 5% thereafter.  There are special rates for carbon free properties and those that are in areas that have been designated by the government as disadvantaged.”

Graysons WE offers a complete and cost effective conveyancing service, which is quick and efficient, enabling first time buyers to make sure that they meet the deadline and save themselves up to £2,500 in stamp duty.

Contact our property department now on 0114 272 9184 or email conveyancing-enquiries@graysons.co.uk