Chancellor Phillip Hammond has handed first-time buyers a major boost in today’s (22 November) Budget.

Stamp Duty has been abolished with immediate effect on properties priced up to £300,000 for those purchasing their first home.

According to the Chancellor this will benefit 95% of first-time buyers who pay the tax.

Meanwhile, first-time buyers of homes worth between £300,000 and £500,000 will not pay Stamp Duty on the first £300,000, paying the normal rates of Stamp Duty on the price above that.

There will be no relief for those buying properties over £500,000.

New homes

On the subject of the housing crisis, the Chancellor committed to “at least” £44 billion of capital funding, loans and guarantees to support the housing market over the next five years and to help deliver 300,000 net additional homes a year on average by the mid-2020s.

The Chancellor also announced:

• A £630 million small sites fund to “unstick the delivery” of 40,000 homes.
• A further £2.7bn to more than double the Housing Infrastructure Fund.
• £400m for estate regeneration.
• A £1.1bn fund to unlock strategic sites, including new settlements and urban regeneration schemes.
• £8bn of new financial guarantees to support private housebuilding and the purpose-built private rented sector.
• Five new Garden Towns in areas of “demand pressure”.

A new review was also announced which will look into what the Chancellor called a “significant gap” between the number of planning applications granted and the number of homes built.

Empty homes and homelessness

Local authorities are to be given the power to charge a 100% council tax premium on empty properties to help combat the issue.

Meanwhile, a consultation on barriers to longer tenancies in the private rented sector was also announced.

Finally, Liverpool will get a share of a new £28m fund for the creation of a new Housing First pilot which will aim to fight homelessness in the city.

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