Taylor Vinters - Solicitors

Published by Tim Hill

First-time buyers across the UK have been reminded the government's holiday on stamp duty is set to come to an end on March 24th 2012 and therefore they are advised that time is running out to make a purchase without having this levy to pay.

At present, first-time buyers across the UJK are exempt from paying this tax. However, from the cut off of March 24th, the levy will stand at one per cent for homes between £125,000 and £250,000 and three per cent on homes valued above this figure.

Wendy Evans Scott, president of the National Association of Estate Agents (NAEA), said it is imperative that people considering a home purchase act quickly, ensuring any others involved in a chain are aware of the deadline and that they act accordingly to get things moving along.

"It is impossible to predict what impact the end of the tax exemption will have on first time buyers, particularly those on very tight budgets of under £250,000 for whom the one per cent tax could be disastrous," she commented.

"The government will need to monitor sales closely and consider other action to support the fragile first time buyer market."

At present, first-time buyers continue to represent a small percentage of the overall activity in the marketplace and the end of this incentive is likely to mean these numbers could fall further over the remainder of 2012.

The news follows an announcement by housing minister Grant Shapps last month that the government is intent on extending its Right to Buy scheme in order to increase the total number of properties qualifying for the initiative.

According to the Department for Communities and Local Government, the cap for purchases is set to be increased to £50,000, effectively trebling the discounts being offered to individuals who are interested in purchasing their council-owned property.

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