As the Autumn Budget looms closer, it’s being reported that Chancellor Hammond is thinking about hacking stamp duty rates for first-time buyers.
A “big cut” in SDLT for first-time buyers is one of a suite of “bold measures” being considered by the Treasury, reports the Evening Standard, in a bid to “restore intergenerational fairness”.
The not-so-subtle strategy to win-over some younger voters to the Conservative cohort, was apparently put forward by backbenchers, and could involve a flat rate of 1% for first-time property purchases…
“The Budget is a good opportunity to seize the political initiative domestically through bold measures on issues like housing,” a Tory insider told the Standard, which is edited by former Conservative Chancellor George Osborne. “A stamp duty cut for first-time buyers would help all those in London whose starter homes are above the threshold of £125,000.”
Recent research by Hometrack found that the number of first-time buyers in London has fallen by 12% since 2014, to 42,400 in the last 12 months. At just 12% of property purchases in the capital, the proportion of FTB’s in London is now at its lowest level since 2000 (12%) and before that 1991 (11%).