Research conducted by L&C Mortgage reveals that a significant number of English first-time buyers are not clear on the impact of last year’s change to stamp duty rules.
The headline figure is that of the people surveyed, 31 per cent were unsure if the changes would benefit them at all. However, there is confusion among those who are more au fait too, with 13 per cent of people under the impression that they could save more than £5,000 – the maximum allowed by the new rules.
Many people believe that the rule change doesn’t go far enough – 62 per cent of those asked believe that stamp duty should be removed for all first-time buyers, and 38 per cent insist that the value of properties excluded from stamp duty should rise in line with house price gains.
Despite this apparent confusion, a recent government report announced that first-time buyers have saved £284m to date through the rule change.
L&C associate director of communications David Hollingworth says: “The stamp duty relief is welcomed by many who are looking to buy their first home, but the new rules could be considered complicated to someone who hasn’t been through the process of purchasing property before.
In fact, the lack of understanding uncovered through our research could mean that some first-time buyers think that owning their own home is one step further away than it actually is – when in reality, a saving of up to £5,000 could be the difference in getting the required deposit together, or dropping to a lower LTV bracket.”