First buyers dominated the real estate market in November, December and January, while hurrying to take advantage of stamping rights dependence before it ends in March.
Those who take their first step on the real estate ladder accounted for 64% of the activity of home movers in December, according to the really temporary comparison site, who said that this figure is a record high.
In the meantime, buyers made up for the first time in January 63% of the market, despite affordability problems that potential homeowners bully.
It is thought that lower mortgage interest and the threatening deadline for postponing the seal rights have been stimulated by many first buyers who may otherwise have withheld.
Indeed, from 1 April the new thresholds for stamping rights will be introduced, which only means those first buyers of less than £ 300,000 will be exempt from paying stamp rights. The threshold is currently £ 425,000.
If the price of the property of the first buyer is £ 300,000 or more, they pay 5% tax on the share above this amount. You can find out more about the changes in our article about Stamp Duty Walks.
Realization said that after the changes the share that the tax pays more than double from 17% at the moment to 40%.
With the typical first copper ownership in England £ 293,174, it can look on paper as if there are no stamp rights to pay for those who buy their first real estate.
But for first buyers who buy property at above -average prices, they are pushed by the stamp exemption ceiling.
Threadsmoving said that the proportion of first buyers who pay stamp rights in every region of the UK will rise with those in London and the southeast of the most struck the most.
Indeed, in London, buyers pay £ 438,442 on average at the first time, therefore the accounts of the stamp rights will increase by £ 6,250 from £ 672 to £ 6,922, according to real consideration, whereby the share pays the tax of 46% at the moment to 79 %.
In the southeast, where buyers pay on average £ 330,441 to secure a first home, the average bills will rise from zero to £ 1,522 and 56% of the first buyers on the tax threshold.
Rob Houghton, founder and CEO of the Moving, said: “First copper activity increased sharply from October to the end of last year and remained high in January. The prospect of bills of higher stamp rights is undoubtedly a factor, with savings of more than £ 6,000 for grabbing if the first buyers in London can complete for the deadline, and more than £ 1500 in the southeast.
“The home heading process will last much longer than before, and transporters have a very busy and stressful few weeks for them, so many first buyers will be disappointed.
“If you buy at more than £ 300,000 and you are not already well advanced in the transport Process, don’t hope for the best. Make sure you have flexibility in your budget to accommodate higher accounts. “