First Purchasers see the Benefit
More than 180,000 buyers have benefited from Stamp Duty Land Tax relief on their first home, statistics published by HM Revenue and Customs have revealed.
The money saving initiative, known as First Time Buyers Relief, was introduced in November 2017, and the figures, published by HMRC on the first anniversary, show that the estimated amount saved totals more than £426 million.
The result has been a significant increase in first time buyer demand.
“First purchasers now account for nearly a quarter of all buyers that register with us” said Beresfords Director Terry Holmes.
“That is up from less than 20% in 2017 and considering the market has stabilised in 2018 with Brexit still unclear, it is a considerable uplift.
“The thousands of pounds they had to save to pay Stamp Duty was a significant proportion of what they needed to find for a deposit.
“We have long argued that it was an unfair tax as it particularly affected first time buyers, those that could least afford it, in London and the Home Counties such as Essex.
“Prices are much higher than other parts of the UK where those buying for the first time often paid nothing at all as the prices were below the old Stamp Duty threshold of £125,000.”
Apart from the Stamp Duty saving, first time buyers can still benefit from the Government’s Help to Buy scheme that makes it possible to buy a brand new home with as little as 5% deposit.
Since it started in 2013 around 200,000 properties have been bought under Help to Buy and a massive 81% of purchasers were first time buyers.
“The Government has quite rightly identified the fact that one of the major barriers to young people buying their first home was the amount of hard cash needed to fund the deposit, often 20% of the purchase price, and Stamp Duty” added Terry Holmes.
“Only a limited number of people had the advantage of being able to tap into the ‘Bank of Mum and Dad’, most didn’t. Trying to save up tens of thousands of pounds when often paying rent made it an impossible dream.
“You can’t argue that Help to Buy has delivered when it comes to supporting those getting on the property ladder. Over 150,000 homes have gone to first time buyers since its inception 5 years ago with the proportion of first purchasers looking for a property through us nearly doubling from just 13% in that time”.
Beresfords mortgage arm, Flagstone, offers independent advice to first time buyers, specialising in sourcing mortgages that are right for the buyer, not the bank. You can contact one of their advisers here or you can click for live mortgage rates.
In the meantime, here are some of top first time buyer picks all of which are zero Stamp Duty with some being brand new and offering Help to Buy.
Situated just off of Springfield Road, located just 0.2 miles away from Chelmsford city centre and Bond Street and being just 0.8 miles away from Chelmsford mainline station is this ground floor apartment benefitting from its own front door and private rear garden. Internally the property is presented to a high standard throughout and has an open plan living space with fitted kitchen, double bedroom and modern three piece bathroom suite. There is also allocation for one parking space and has a recently renovated and landscaped rear garden. ID: 492836. EPC: D
Currently on the market for a guide price of £240,000. For further information contact our Chelmsford Sales Office.
An immaculate two bedroom semi detached modern home, presented in an excellent condition throughout with approximately four years remaining on the NHBC warranty. Upon entering the home you are greeted by a 14 Ft entrance hall with access to a ground floor cloakroom/WC and modern kitchen with integral fridge/freezer and washing machine with plumbing for a dishwasher. There is a light an airy lounge/diner to the rear of the property with double doors leading onto the rear garden. The first floor benefits from a modern family bathroom and two well proportioned bedrooms both benefiting from fitted wardrobes. Externally this property boasts allocated parking for two vehicles and a rear garden of approximately 33 Ft. The property is within walking distance of Colchester's town centre and within catchment of the desirable Hamilton Primary School. EPC: B
Currently on the market for a guide price of £240,000. For more information contact our Colchester Sales Office.
With no onward chain, Beresfords are pleased to offer this spacious ground floor studio flat which has been renovated and is beautifully presented by the current owner, also conveniently located a short 5 minute walk to Braintree railway station (source: googlemaps). The property offers investment potential rental yield of 5.22% at £500pcm.Internally the property consists of hallway, bathroom, living space/bedroom and fitted kitchen. Externally there is gated allocated parking. This location also provides a 6 minute drive to Braintree Freeport Designer Village, with a whole host of shopping facilities, restaurants, bowling alley, cinema, swimming complex and Braintree Freeport railway station which offers a 59 minute journey to London Liverpool Street with no changes. In addition, there is convenient access to the A120 for A131, M11 and Stansted Airport. An internal viewing is strongly advised. (EPC Awaited).
Currently on the market for a guide price of £114,950. For further information contact our Braintree Sales Office.
Set in beautiful gardens and positioned in a highly sought after development within, we feel, walking distance of the town centre and Caste Park, is this delightful over 60's one bedroom second floor apartment. Internally the property benefits from a lounge/diner and a well proportioned master bedroom, both offering views over the stunning gardens, with kitchen and modern tiled shower room. Cranmere Court comprises of approximately fifty-six properties arranged over three floors, each served by a lift. The residential development manager can be contacted via various points within each property. The property is offered for sale with no onward chain. EPC: C
Currently on the market for a guide price of £124,995. For further information contact our Colchester Sales Office.
The property is entered via communal entrance with stairs rising to the first floor. The personal entrance door leads to an entrance hall with wood effect flooring and built in airing cupboard. There is a spacious living/bedroom area with a feature bay window, wood effect flooring, 9’4 ceiling height and the modern fitted kitchen has an integrated electric oven/hob and cooker hood. There is a modern bathroom/wc with fully tiled walls and ceramic tiled flooring. To the front of the property you will find communal parking for residents. EPC F
Currently on the market for a guide price of £189,995. For further information contact our Brentwood Sales Office.