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Stamp Duty help for young first-time home buyers!

"It is simply too expensive for so many young people to buy a home today, saving up for the deposit, paying the fees and having enough left over for the stamp duty. ” Ed Miliband.

“There’s nothing more British than the dream of home ownership, starting out in a place of your own. But for so many young people today that dream is fading with more people than ever renting when they want to buy, new properties being snapped up before local people get a look-in, young families wondering if this country will ever work for them.  It is simply too expensive for so many young people to buy a home today, saving up for the deposit, paying the fees and having enough left over for the stamp duty. ” Ed Miliband.

A Labour government would help bring closer the “dream of home ownership” for young people by abolishing stamp duty for all first-time buyers purchasing homes worth up to £300,000. First Call, a policy that will give first-time buyers the first choice of up to half of the homes being built in their area. Labour is planning to build 1m homes in the next parliament.

The initial costs of buying is a factor that keeps many young people renting. Research from the Halifax Building Society shows that currently monthly rent is similar to the monthly mortgage payment for a first time buyer.

South West - £736 average monthly mortgage payment, £755 average monthly rent.

The £225m cost of the scheme, which will be in place for the first three years of a Labour government, will be fully funded by tackling tax avoidance by landlords, increasing tax paid by holding companies that buy UK property on behalf of investors and by cutting the tax relief for landlords who fail to maintain their properties.

Writing in the Conservative supporting Spectator magazine editor Fraser Nelson commented;

“I hate to admit it, but Ed Miliband has a point about the need for raising the stamp duty threshold to £300,000 for first-time buyers. The tax was invented to give the government a slice of the more expensive housing transactions – the higher-rate threshold of £250k was introduced in 1997 when the average house cost £60k. Now, the average house is closer to £250k. This failure of stamp duty thresholds to rise with the market has been a way for Chancellors to cash in on the asset bubble. Stamp duty cost homebuyers £9.5bn last year – Osborne plans to jack this up to £18bn by 2019/20. A massive tax sting, through the anaesthetic of fiscal drag. (Osborne plans the same trick with inheritance tax).

That’s not right: buying your first home is hard enough, without the government whacking up the price even further. So lifting the threshold to £300k to compensate for the outrageous and cruel surge in property prices will be a welcome relief. (Osborne tried something like this a while back, but it was piddling and he gave up rather quickly).

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published this page in Blog 2015-04-28 10:38:34 +0100

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