News

The Chancellor Alistair Darling has announced in his Budget that there will be a two year abolition of stamp duty on residential property purchases up to £250,000, but only for first time buyers. The temporary measure comes into force on 25 March 2010 and will expire on 25 March 2012. To help pay for the cost, stamp duty will be charged at 5% on residential purchases over £1 Million, this measure commencing on 6 April 2011.

The Government will be hoping the move will attract to the housing market more first time buyers, currently struggling to raise the finance to buy their first home. However, the relief is somewhat limited, and it remains to be seen how great an impact it will have on the housing market in general.

For buyers who do not qualify for the relief, stamp duty remains payable on purchases which exceed £125,000.

Michael Storey - Head of Residential Conveyancing