HM Revenue & Customs (HMRC) has published data which reveals that more than 100,000 first-time buyers have benefited from Stamp Duty Land Tax (SDLT) reforms announced at the last Budget.
During the period until 30 June this year, 121,500 first-time buyers saved a combined total of £284 million according to HMRC.
First-time buyers who purchase homes of £300,000 and below pay no SDLT, while those purchasing properties up to £500,000 pay no SDLT on the first £300,000.
It is estimated that the policy will help more than 1 million people make the step onto the first rung of the housing ladder over the next five years.
Mel Stride MP, the Financial Secretary to the Treasury, said: “Once again, we can see that our cut to SDLT for first-time buyers is helping to make the dream of home ownership a reality for a new generation – exactly as we intended.
“In addition, we’re building more homes in the right areas, and have introduced generous schemes such as the Lifetime ISA and Help to Buy.”
As well as the cut to SDLT, first-time buyers are also able to benefit from schemes such as the Help to Buy equity loan, Help to Buy ISA and Lifetime ISA, which can be used to save for a first home purchase or for later in life.
Meanwhile, it has also been announced that the window for making SDLT payments following the completion of a property purchase will be shortened from 30 to 14 days with effect from 1 March 2019.
However, the move is unlikely to have a significant impact on individual homebuyers as it is thought that fewer than 500 homebuyers each year file an SDLT return without the assistance of a professional advisor.