Act now to avoid paying stamp duty

First time buyers are being urged to snap up properties before the end of the stamp duty holiday in March this year.

With only two months to go until the end of the holiday period, potential homeowners could save thousands if they act now.

As of Saturday 24th March, first time buyers will have to pay 1% stamp duty on properties between £125,000 and £250,000. They will also have to pay 3% on properties over £250,000.

According to the National Association of Estate Agents (NAEA) figures, the number of sales to first time buyers edged up in November and December last year, from 19% to 21%.

Despite this, figures are below expectations and the number of first time buyers stills represents a low percentage in the overall property sales.

NAEA research found that the number of first time buyers getting on the housing ladder hit a three-year low in October, taking just 16% of the total sales.

Wendy Evans Scott, President of the NAEA commented; “With only two months remaining, first time buyers must act quickly to avoid paying Stamp Duty Land Tax on their first home purchase. ì

ìIf you’re currently in a chain and waiting to complete your purchase then make sure that others in the chain know about the end of the tax holiday too. Good communication with your solicitor can help move the process forward, helping you beat the 24th March cut-off.”

If you are looking to buy a property in the near future, it could be worth shopping around to find the best mortgage. Buying a property can be expensive and the stamp duty is just one of the additional costs you may face. You could try and reduce your expenditure by looking for the best mortgage deal.

Compare mortgages with Money Expert.

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