One in seven millennials say they are more confident about their home ownership prospects following the recent changes to stamp duty for first-time buyers.  

This news, which derives from research carried out by the Foresters Friendly Society, is positive and perhaps to be expected, but with property prices in London in particular still out of reach for many first-time buyers, the stamp duty break will not benefit all of them, including some looking to buy in parts of Islington and Stoke Newington.  

The Chancellor announced in the last Autumn Budget that stamp duty would be abolished, and this measure would mean a stamp duty cut for 95% of first-time buyers, while 80% of first-time buyers would not have to pay stamp duty at all.  

No stamp duty now needs to be paid by first-time buyers when buying a property worth up to £300,000, nor does stamp duty need to be paid on the first £300,000 when purchasing a home worth up to £500,000.  

But lack of housing supply remains a key issue, an issue which was addressed extensively by the Chancellor in the Autumn Budget. However, there are fears that unless the number of affordable homes increase, the abolition of stamp duty for first-time buyers could result in house price rises.  

Meanwhile, the research also revealed that some of those who are saving for a deposit on a property are not always using the best means of doing so. First-time buyers are therefore being encouraged to make sure they explore all saving product options available to them when they start saving for a deposit.   

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Financial Reporter