First-time buyers will not be main beneficiaries of stamp duty cut, warns OBR
The Office for Budget Responsibility has warned that one of the key measures introduced in yesterday’s budget could backfire on chancellor, Philip Hammond. Stamp duty for all properties up to £300,000 bought by first-time buyers has been abolished with immediate effect. Those spending up to £500,000 will also benefit, as the first £300,000 of the purchase price will not now be subject to tax.
The OBR however, has stated that the tax changes are likely to push property prices up by 0.3%, with most of the increase coming in 2018. The forecasting group commented that those most likely to benefit from the changes would be “people who already own a property, not the FTBs [first-time buyers] themselves.”
Full story available from The Guardian: https://www.theguardian.com/uk-news/2017/nov/22/stamp-duty-cut-first-time-buyers-fix-housing-market-budget-2017