Reporting Back: Stamp Duty Cut
Author: Chloe Smith, Updated: 22 November 2018 14:11
New statistics released yesterday, show that the Government’s cut to stamp duty a year ago has benefited over 180,000 households, helping more people to achieve the dream of home ownership.
- The Government is giving practical help to first-time buyers, reducing the burden that they face in purchasing their first home. Almost every first time buyer – around 95 per cent – will benefit from the changes, with around 4 in 5 paying no stamp duty at all.
- The changes to stamp duty are just one of the steps the Government has taken to fix the housing market, helping people get on the housing ladder and have the security of their own home.
New figures reveal that over 180,400 households have been helped on the housing ladder thanks to the stamp duty cut. In the third quarter of 2018 those claiming first time buyers’ relief on stamp duty was 58,800, up 12 per cent on the previous quarter (HMRC, Quarterly Stamp Duty Land Tax Statistics Commentary and Tables, 21 November 2018, link).
- In total, first-time buyers saved a £142 million this quarter helping to reduce the burden they face when purchasing their first home. This takes the total savings since the scheme’s introduction to £426 million (HMRC, Quarterly Stamp Duty Land Tax Statistics Commentary and Tables, 21 November 2018, link).
The Government is helping to get more people on the housing ladder by:
- Backing families with Help to Buy schemes which have made homeownership a reality for more than 420,000 people. This includes more than 365,400 first-time buyers who are now on the housing ladder thanks to Help to Buy (MHCLG, News Story, 16 August 2018, link).
- Boosting Help to Buy with £10 billion to help more hard working people get a foot on the housing ladder. More than 130,000 completions have already taken place by people using the equity loan, which helps people buy a new build home with only a 5 per cent deposit (MHCLG, Press Release, 2 October 2017, link).
- Delivering over 378,000 affordable homes since 2010, including 257,000 for rent, making home ownership easier for working people. The Government is going further and supporting councils to build more affordable housing by removing the borrowing cap for councils to build (MHCLG, Press Release, 26 June 2018, link; MHCLG, Press Release, 3 October 2018, link).
The Government is also building the homes people need:
- Setting out ambitious plans to deliver more than 300,000 homes per year by the mid-2020s backed by £44 billion – last year the Government delivered more homes than in all but one of the last 30 years. Over 222,000 new homes were delivered last year, an increase on the previous year. There is more to do and the Government has an ambitious target to raise the level of new homes to the highest since the 1970s (MHCLG, Press Release, 15 November 2018, link).
- Reforming planning rules so the right homes are built in the right places. The Government has revised the National Planning Policy Framework, ensuring that more land in the right places is available for housing (HM Treasury, Budget 2018, 29 October 2018, link).
- Unlocking 650,000 homes through the Housing Infrastructure Fund providing communities with the schools, hospitals and transport they need. This funding is also directed towards new roads, cycle paths, flood defences and land remediation work, all essential ahead of homebuilding (HM Treasury, Budget 2018, 29 October 2018, link).