Stamp duty holiday saves first-time buyers £319 million

First-time buyers have saved an estimated £319 million as a result of the stamp duty holiday which began in March 2010, new analysis from Santander Mortgages suggests.

The two-year stamp duty exemption, which comes to an end on 24 March this year, offers first-time buyers savings of up to £2,500 and is estimated to have benefitted roughly 170,000 new home owners.

Santander Mortgages is urging first-time buyers to act fast if they still wish to take advantage of the tax holiday, otherwise they will have to pay 1 per cent tax on property purchases between £125,000 and £250,000 and 3 per cent on homes over £250,000.

Phil Cliff, director of Santander Mortgages, said:  “Getting a foot on the ladder is a tough task for first-time buyers against the backdrop of a sluggish property market. Despite the availability of some very affordable mortgage deals, that extra £2,500 can make a huge difference to a financially stretched first-time home buyer.”

Bob Pannell, chief economist of the Council of Mortgage Lenders, commented: “The CML expects first-time buyer transactions to pick up as the concession end date looms nearer. For those who miss the deadline, the credit constrained environment we find ourselves in means first-time buyers will increasingly have to fund stamp duty from their back pockets so the end of the concession will have a real impact.”

Santander’s range of mortgages is available up to 90% LTV, which now also includes buy-to-let deals available through intermediaries. In addition, all new mortgages have a Homebuyer Solutions package (free valuation and £250 cashback) available, to help customers with the up front costs of moving.