With just days to go until Chancellor Philip Hammond unveils his Budget speculation is mounting that a Stamp Duty holiday may be on the cards. The Chancellor is under pressure to cut the tax for first time buyers in order to help more borrowers get on the property ladder. And several recent studies have shown just how much of an obstacle Stamp Duty actually is.
A report by the Centre for Economics and Business Research revealed Stamp Duty is preventing a staggering number of house purchases a year. The study claimed an extra 146,000 sales could have taken place over the past five years had buyers not been deterred by the tax.
Meanwhile a study by the specialist bank Aldermore found one in five people who have bought a house within the last three years would be willing to buy again if Stamp Duty was cut. House movers are essential for the success of the housing market because, as people move up the property ladder, they free up more first time buyer friendly homes for new buyers. If Stamp Duty is making people stay put this will be having a huge impact on the market.
All eyes are on you Mr Hammond. We watch with baited breath!
A mortgage is a loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage.