Budget brings stamp duty cut for shared ownership buyers
It was a budget for the “strivers and the grafters,” who are “the backbone of our communities and our economy,” according to the Chancellor, Philip Hammond, who presented his final, pre-Brexit Budget on 29th October 2018. Among them were first-time buyers of shared ownership properties, who stand to benefit from changes to stamp duty.
“We can’t deliver the high standards of living the British people deserve without fixing our housing market,” said Mr Hammond, before announcing the move, which will abolish stamp duty on shared ownership properties worth up to £500,000, where the first-time buyer purchases a 25% to 75% stake. The benefit will be applied retrospectively to sales in the past year.
In his previous Autumn Budget, the Chancellor removed stamp duty for first-time buyers on all properties up to £300,000. This, he says, has helped 121,500 people onto the housing ladder and placed the number of first-time buyers at an 11-year high.
Mr Hammond also announced a two-year extension of the Help to Buy equity loan scheme, which offers a government loan of up to 40% (in London) of the purchase price for a newly-built property. The scheme was due to end in 2021, but has been extended until March 2023, for first-time buyers only.
A price cap on the homes eligible for the scheme has also been increased meaning that, in London, buyers can use Help to Buy for a property costing up to £600,000.
Read more about the Autumn Budget 2018, and its impact on the housing market, on the BBC website