A lot of contractor mortgage experts are questioning why the Chancellor did not extend the stamp duty exemption when he delivered his Autumn Statement at the end of November.
George Osborne was keen to say that the government wanted to help first time buyers and yet he missed a golden opportunity to extend the stamp duty holiday, which is due to finish on the 24th of March next year.
First time buyers will have to find up to £2,500 extra to buy a property and in these uncertain economic times, that could make all the difference between buying their first home or staying in rented accommodation.
High deposit requirements have meant first timers have been struggling to buy over the last few years. Now, they have only a small window in which to secure a property before the stamp duty exemption disappears.
The National Association of Estate Agents’ former president, Trevor Kent, said the Autumn Statement was the ideal time for the Chancellor to rethink stamp duty across the board. A £50,000 bill on a £1 million property is a lot of money and is the primary reason why the high-level housing market is stumbling.
70% of residential property sales involve a long chain that usually begins with the first time buyer and after various transactions ends up with a million pound buyer. If the sale at the top end falls through due to the 5% stamp duty levy, the entire chain collapses. Meanwhile, the first time buyer could be left with limited funds after paying expenses on the now aborted deal.
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