Stamp duty holiday saves first-time buyers £319m

First-time buyers have saved hundreds of millions of pounds thanks to the stamp duty holiday which is set to come to an end next month, research shows.

According to Santander, the two-year exemption from stamp duty, which is scheduled to come to an end on 24 March, has collectively saved first-time buyers a staggering £319m in fees, proving that the initiative has helped to boost demand for residential properties nationwide.

Research also reveals that 89% of all first-time buyers who had purchased a home over the past two years were able to do so without having to spend extra money on the tax.

First-timers are still eligible to be exempt from paying stamp duty on a home costing under £250,000, as long as they beat next month's deadline.

After the holiday finishes, those who purchase a property worth more than £125,000 will have to pay 1% of their overall final paid price in stamp duty, equating to up to a maximum value of £2,500 each. The tax rises to 3% if the property costs more than £250,000 to buy.

Phil Cliff, director of Santander Mortgages, commented: "Getting a foot on the ladder is tough task for first-time buyers against the backdrop of a sluggish property market. Despite the availability of some very affordable mortgage deals, that extra £2,500 can make a huge difference to a financially stretched first time home buyer.

"The end of the stamp duty tax holiday is looming so we're urging new buyers who are in the process of purchasing a home or even those hoping to do so in the immediate future to act fast."

There is a wide selction of new homes available nationwide for first-time buyers looking to find a property ahead of next month's reintroduction of the 1% tax.

Weston Homes, for instance, are offering a luxurious selection of two-bedroom apartments and three-bedroom houses at JAVA in South Ockendon, Essex, with prices starting from £137,995.

Larkfleet Homes is developing a range of two-, three- and four-bedroom homes at Willoughby Walk in Bourne, Lincolnshire, with prices ranging from £124,995 to £179,995.

Homehunters looking to find a property in Suffolk may be interested in The Martellos which is being developed by Hopkins Homes in Felixstowe. Prices start from £122,995.