First-time buyers purchasing shared ownership properties should benefit from the government’s changes to stamp duty, according to the Labour Party.
Chancellor Philip Hammond announced in last year’s Budget that first-time buyers would enjoy an exemption from stamp duty on all purchases worth up to £300,000.
On larger purchases they will not pay stamp duty on the first £300,000 of the purchase price.
Buyers of shared ownership properties may not benefit from the cut however, as stamp duty is paid on the full value of the property rather than just the slice of the property being bought.
For example, a first-time buyer purchasing a 50 per cent stake of a £400,000 shared ownership property would still have to pay stamp duty, even though they had only spent £200,000.
Speaking to the BBC, Labour shadow minister for housing John Healey says this is unfair as “these are the people that this stamp duty relief should be there for and it isn’t”.
He adds: “I want to see [the government] applying to shared ownership, the same rules as they apply to people buying a full house for the first time.”