Stamp duty holiday saves FTBs £319 million

With the two-year exemption from stamp duty set to come to an end in just over a month, the savings which have been made by millions of first-time buyers (FTB) around the country are quite substantial, proving the worth of the scheme as a way to boost the UK property market.

Earlier this week, it was announced that the holiday had seen 89 per cent of first-time buyers who had purchased properties for sale over the last two years be able to do so without having to spend extra money on the tax. First timers are eligible to be exempt from paying stamp duty as long as the property they purchase costs less than £250,000.

Now, Santander has said that the holiday has saved those who purchased these homes a collective £319 million over the course of the past two years.

After the holiday finishes, those who purchase a property worth more than £125,000 will have to pay one per cent of their overall final paid price in stamp duty. Anyone who pays more than £250,000 for a home will have to spend three per cent of the sale value on stamp duty.

It is estimated that 170,000 have benefited from the holiday, to a maximum value of £2,500 each.

Phil Cliff, director of Santander Mortgages, commented:  "Getting a foot on the ladder is 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.

"The end of the stamp duty tax holiday is looming so we're urging new buyers who are in the process of purchasing a home or even those hoping to do so in the immediate future to act fast."