The last Autumn Budget has had a positive impact on the outlooks of many first-time buyers, with 58% of millennials saying their confidence has increased following the changes to stamp duty.
According to research from Foresters Friendly Society, over half of millennials saving for a deposit to buy a house are more positive and confident about achieving their goals since Chancellor Philip Hammond revealed the government’s intention to make changes to stamp duty for first-time buyers.
Last November, the Chancellor announced that stamp duty for first-time buyers would be abolished on all property purchases up to £300,000, and on the first £300,000 on all property purchases up to £500,000, with immediate effect.
The same research also honed in on the Lifetime ISA, an individual savings account which can be used to assist with buying a first home. Though awareness of the Lifetime ISA is high, only 11% of first-time buyers are making use of it.
Chief Executive of the Foresters Friendly Society, Paul Osborn, said: “While it’s encouraging that three quarters of those under 40 are aware of the Lifetime ISA, it is evident that more work needs to be done to help them understand the role that it can play in their long-term savings plan.”
Osborn continued: “The 25% government bonus offers significant savings support at a time when inflation continues to outstrip wage growth and is putting pressure on people’s savings.”
But the reality of increased confidence among 58% of millennials is a positive development. Though the abolition of stamp duty for first-time buyers will better benefit those not buying in London, many first-time buyers in Wimbledon will be able to benefit from a cut to stamp duty even if they don’t benefit from the full stamp duty saving.
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