Savills welcomes Government announcement on Stamp Duty

Today's announcement finally clears up the uncertainty over stamp duty, and provides a much-needed boost to first-time buyers, says Savills Private Finance, the independent mortgage broker.

With the average UK house price at just under £165,000, raising the stamp duty threshold to £175,000 will mean many first-time buyers will save hundreds of pounds. The move also ends the paralysis that has hit the housing market since potential plans to suspend stamp duty were leaked last month.

Melanie Bien, director of Savills Private Finance, says: ‘This is a positive move which may encourage first-time buyers with access to a deposit who have put their purchase on hold to finally take the plunge. Canny first-time buyers will buy now with next year's discount factored in i.e. they will negotiate the likely fall in prices over the next 12 months into the price.

‘The biggest challenge will be in finding a mortgage. Those who don't have a 10 per cent deposit will struggle to get finance, while even those with a deposit of this size will face the highest mortgage rates. While lenders have been cutting rates in recent weeks, criteria are not easing and those with at least a 40 per cent deposit, or that level of equity in their homes, still have access to the cheapest mortgage deals.'