The rules for first-time buyers have been complicated in recent months with the introduction of the Stamp Duty Land Tax holiday.
Launched in response to the coronavirus pandemic, the stamp duty holiday was designed to boost the property market by giving almost all property buyers stamp duty relief.
Under the temporary scheme, the rate at which you start paying the tax has been increased to £500,000 – meaning nine out of 10 homebuyers will not pay any tax at all, with the average purchaser making a saving of £4,500.
But the initiative is set to come to an end as planned on 30 June and be replaced by a new transitional rate of £250,000 until 30 September, before reverting to the standard rate of £125,000 on 01 October 2021.
So, how does this affect first-time buyers?
It has been confirmed that the special rules for first-time buyers will be reinstated after the holiday comes to end in June, meaning first-time buyers will continue to benefit from the increased threshold of £300,000.
From this year, first-time buyers can also benefit from the new Help to Buy Equity Scheme and even more low-deposit mortgages, after the Government provided banks with a guarantee to incentive lending across the whole of the property market.
So, if you are a first-time buyer, get in touch with our expert property agents to find out how you can make your dream property purchase a reality.
