Holiday is nearly over for First Time Buyers paying Stamp Duty – posted 19/1/2012

First time buyers have been reminded they will have to act quickly if they want to avoid paying stamp duty.

With only three months of the stamp duty holiday remaining, the National Association of Estate Agents (NAEA) has warned first time buyers time is running out to take advantage.

At present, first time buyers purchasing properties up to the value of £250,000 are exempt from having to pay stamp duty.

However, the 24 March 2012 end date for the initiative is fast approaching, after which the rules will revert to normal.

This means anyone buying a property for more than £125,000 will have to pay stamp duty of at least 1%.

It had been hoped that the holiday might be extended further in order to help keep costs down for first time buyers.

However, the Chancellor’s Autumn Statement passed without an extension being granted.

“From March 2012 the holiday is well and truly over for first time buyers,” said Peter Bolton King, chief executive of the NAEA.

“Once the Government ends the tax exemption, first time buyers will face a tax of 3% on all home purchases over £250,000.

“With many first time buyers trying to purchase their first home before the tax exemption deadline, our members will be working closely with those first time buyers who are able to purchase before March 2012 to guide them through a difficult and challenging market place.”

Stay affordable, remember fees, keep a paper trail and know your maximum offer are amongst the snippets of advice that the association offers to first time buyers.