Analysis of the stamp duty holiday suggested first-time buyers weren’t receiving too much benefit from the scheme. With the £500,000 threshold, the most significant savings were enjoyed by buyers who purchased homes in more expensive areas or who were upgrading the size of their property.
However, a new study suggests this might not be the case. While first-time buyers can enjoy a stamp duty saving, the additional threshold appears to have assisted some buyers.
In Royston, Rightmove states the average price paid for a property is £387,911 over the past year. This is a figure which is above the £300,000 threshold. First-time buyers who purchase a property between £300,000 and £500,000 had to pay SDLT at 5%. Of course, with the stamp duty holiday in place, this was no longer the case.
Therefore, there is a good chance that some buyers in Royston have boosted the savings they enjoy when stepping onto the property ladder.
Has stamp duty helped first-time buyers?
The survey indicates 39% of first-time buyers who responded have capitalised on the stamp duty holiday. Also, 8% of respondents say they haven’t purchased a property yet, but intend to do so before the stamp duty holiday expires.
42% of respondents aged between 25 and 44 have utilised the stamp duty holiday saving.
How are buyers saving for a mortgage?
The study indicates:
· 53% of buyers save for a property deposit by themselves
· 34% of buyers have received help from family members
· 28% of buyers have received money via an inheritance
· 11% of buyers have taken out a loan
· 10% of buyers have received assistance from Government schemes
· 8% of buyers claim to have won money which helps them secure a deposit
There are many challenges in buying property
Respondents were asked what the most complicated parts of the property buying process was, and the following top ten answers were provided:
1. Saving for a deposit (33%)
2. Finding a good mortgage deal (32%)
3. Mortgage application process (28%)
4. Understanding the terms (22%)
5. Knowing where to start (22%)
6. Fees (conveyancer, solicitor, taxes) 20%
7. Finding the right home (19%)
8. Getting an offer accepted (18%)
9. Property surveys (13%)
10. Home viewing process (13%)
Nima Ghasri, director at GoodMove, said: “First-time buyers generally have the hardest time buying a home, with securing a deposit and mortgage approvals among the hardest part of getting on the property ladder. In this campaign, we wanted to see exactly how first-time buyers and those looking to buy a home in the immediate future have bought their home and secured their deposit as well as what they found the hardest part to be. It’s great to see so many first-time buyers taking advantage of government schemes and also securing deposits by themselves and proves to us that the property market isn’t all that bad for first-time buyers and people can get onto the property ladder!”
In line with Government guidelines, our Royston branch is open and is staffed with sales and lettings personnel. If you have any queries or need advice on property sales and lettings then please call 01763 245121 or email email@example.com.