Measure will reinvigorate housing market, benefitting over 200,000 people a year
Sean Randall, Director in Deloitte's Tax Practice comments:
"We welcome the Chancellor's move to introduce a cut in stamp duty for first time buyers for properties up to £250,000. This will undoubtedly prove a welcome stepping stone for those first time buyers keen to get a foot on the property ladder in what is a challenging property market.
"We expect this to benefit over 200,000 buyers a year. The measure will reinvigorate the housing market after Bank of England mortgage data shows the end of the £175,000 holiday at the start of the year held back the house price recovery.
"In 2008-2009, the Exchequer received approximately £500m from residential purchasers where the consideration was £250,000 or less. However, the cost to the Exchequer of introducing this measure will depend on fluctuations in the numbers of first-time buyers, and the market in general. Earlier this month it was reported that first-time buyers dropped to 25% (down from a usual 40%) of the total market.
"The holiday is to be funded by an additional 5% rate of stamp duty land tax for residential property over £1 million from 2011-12."
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