Stamp duty cut to save FTBs £3bn over five years

Scrapping stamp duty for first-time buyers will save them more than £3.1bn in the next five years, according to Budget documents.

Earlier today Chancellor Philip Hammond announced the move for all properties worth up to £300,000.

The Chancellor has said that in more expensive areas “such as London”, stamp duty will be abolished on the first £300,000 of properties valued at up to £500,000.

Treasury documents published alongside the Budget show the Government predicts the move will save FTBs £125m in the 2017/18 year.

Would-be homeowners would save £560m in the 2018-19 year, £585m in 2019-20 and £610m in 2020-21.

The move will save FTBs £640m in 2021-22 and £670m in 2022-23.

The documents say: “The costing accounts for a behavioural response whereby the volume of affected transactions is increased due to a change in prices.”

The tax change applies to all first-time residential property transactions in England, Northern Ireland and Wales.

However, after 2018 Wales is not included in the forecasts as SDLT is being devolved to the country then.

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