Osborne axes stamp duty relief to help home buyers

Chancellor George Osborne has ended the extra stamp duty relief designed to help first time homes buyers, as part of today’s autumn statement.

In the documents supporting today’s statement, it emerged that the stamp duty relief on all house purchases worth up to £175,000 will be cut, meaning stamp duty will be paid on all purchases worth more than £125,000.

The change will come into effect on 24 March next year.

The documents said: “The government is publishing analysis showing that the stamp duty land tax relief for first time buyers has been ineffective in increasing the number of first time buyers entering the market. This relief will therefore end on 24 March 2012 as planned.”

It said the government was instead prioritising “more effective measures which provide better value for money” contained in last week’s housing strategy.

Steve Turner, spokesperson for the Home Builders’ Federation, said: “It’s disappointing because we know the issues first time buyers are facing. Ideally he would have left stamp duty as it was. However, if you take it in conjunction with last week’s announcement on mortgage lending then clearly overall there’s still less pressure on first time buyers.”