First time buyers still have options to help them get on the property ladder

Times are hard, and now we’re hearing that the UK’s economic recovery is ‘paralysed’ by Europe’s debt crisis. With the economy the way it is, first time buyers often write off the possibility of ever getting on the property ladder and believe they are set to rent for the rest of their lives. This is not the case anymore, with the government; various agencies; housing associations and property developers now offering a range of deals to help first time buyers get on that crucial ladder. Here are 5 tips that can help you keep those costs down…

Shared ownership

Shared-ownership is a terrific way into home ownership and is the main affordable housing scheme. If you cannot afford to buy outright, you can part buy part rent your home – you pay a rent on the share that you do not buy which is set at an ‘affordable’ rate. The bigger the share that you purchase, the less rent you have to pay.

The FirstBuy scheme

Saving for a deposit is something that holds lots of first time buyers back. Schemes like this give you a step up onto the ladder, by lending you some of the money through a shared equity offer. If you purchase your first home in England though the FirstBuy scheme, your deposit could be as low as 4% – there are online calculators to see the difference it could make. If you are looking in Scotland or Wales, there’s a similar scheme called Head Start.

Avoiding stamp dut

Not an offer as such, but a way to reduce the cost of purchasing your own home. If your home’s value is less than £250,000 there’s no Stamp Duty to pay if you complete before March 24, 2012. That could save you up to £2,500 when you move.

Family ownership with your parents

It is becoming increasingly popular for young single people to include their parents on their mortgages. Even if they just own 1% of the property this security enables you to borrow more money from the bank and buy a more expensive property.

Move to a cheaper area

This does not sound like a perfect solution but sometimes in life, we have to take a step sideways to move forwards. House prices in some areas are much cheaper. If you are willing to move to these areas then you can make buying a house a real possibility. You never know, you may make a hefty profit in the end. It is worth bearing in mind that cheaper areas do not always mean lower quality. For example, some areas are more expensive because they are close to good schools so it is worth researching prices in different areas.

Tags: Equity sharing, Wales, something, deals, housing associations, tips, buying, main, Shared-ownership

New government may reverse stamp duty break for first time buyers

In the budget by the former Chancellor of the Exchequer, Alistair Darling, earlier this year it was announced that there was to be a stamp duty break for first time buyers in the UK, and that first time buyers would be able to buy a property up to the value of £250,000 without having to pay any stamp duty.

The former Labour government was hoping to help more first time buyers onto the property ladder and to revive the housing market through this move. The increased stamp duty exemption threshold was twice the standard levels, which is £125,000, and was made available for first time buyers only.

However, it has emerged that the new coalition government is considering scrapping the extension on stamp duty exemption, which means that first time buyers could have this important tax break pulled out from under them just months after it was originally introduced.

The extension on stamp duty exemption was set to last for two years until 2012, but as part a range of cutbacks the new coalition government could end up getting rid of the stamp duty break. The Conservative party had previously supported increasing the stamp duty exemption threshold for first time buyers, and the Labour party was said to have pinched the idea from the Tories.

In fact, many thought that the Conservative party would make the increased exemption permanent if elected, but instead the government is considering scrapping the tax break altogether in a bid to save more money to clear the public deficit.

The recent budget stated: ‘As announced in the Coalition Agreement, the Government will review the stamp duty land tax relief for first time buyers taking into account its impact on affordability and value for money.’

Tags: Herald Sun, Stamp duty in the United Kingdom, first time buyer, tax, stamp duty, coalition agreement, chancellor

Stamp duty holiday affects mortgage lending figures for January

It has been revealed in a recent report that the level of mortgage lending for the month of January has been badly affected by the end of the stamp duty holiday, which came to an end on 31st December last year. Read more

Tags: stamp duty, percent drop, stamp, mortgage, duty holiday, advanced warning, mortgage lending, council of mortgage lenders

Buyers striving to complete property purchase before end of stamp duty holiday

Many buyers are now said to be rushing to try and complete the purchase of a property before the stamp duty holiday in the UK comes to an end. The stamp duty holiday was brought in last year in a bid to try and kick start the property sector. Read more

Tags: stamp duty, Alistair Darling, Taxation, Stamp duty in the United Kingdom, first time buyer

More breathing space over stamp duty

Following his recent budget, Alistair Darling, the Chancellor of the Exchequer, revealed that the break on stamp duty on properties up to a certain value was to be extended until the end of this year. Read more

Tags: term impact, council of mortgage lenders, london, step, budget measures

Government suspends stamp duty on homes up to £175,000

Early last week the government announced that it was suspending stamp duty for twelve months on homes up to the value of £175,000. Stamp duty is not applicable on homes up to £125,000 anyway, but the recent move increased the threshold by £50,000 for twelve months in order to try and ease affordability issues for potential buyers. The announcement came after several weeks of speculation with regards to whether any action would be taken over stamp duty. Read more

Tags: government, certain value, affordability problems, money, Taxation in Hong Kong, stamp duty, number

Stamp duty rumours spark further slowdown in housing market

Over recent months the housing market in the UK has experienced a real slump, with house prices falling and property sales falling to their lowest level in many years. Property sales and housing transactions have been affected in a number of ways over recent months and for a number of reasons. The tight credit conditions that have come into play since the onset of the global credit crunch have resulted in more people being unable to get a mortgage. In addition to this falling house prices have put many people off taking the plunge for fear of house prices falling further and leaving them quickly facing negative equity. Read more

Tags: recent reports, GBP, connection, chancellor, property sales, stamp duty

Property sales continue to slump

As most people are aware the sale of properties in the UK has really fallen over recent months, and estate agents have reported amongst their poorest sales figures of properties for decades. A recent report has shown that property sales have now fallen by 40%. In the last three months estate agents have average around five property sales a month each, as property transactions continue to plummet, and homeowners looking to sell their homes are finding things very difficult, with many feeling pressured to reduce the price and sell to predatory buyers looking to take advantage of the slow market by offering desperate selling ridiculously low prices. Read more

Tags: property sales, mortgage drought, everything, Chartered, drought, stamp duty, selling, slow market

FTBs surprised by first-year costs

Many people who take out a mortgage for the first time are surprised to find that the first year in their new home is a real financial strain.

According to Yorkshire Bank, a large number of first-time buyers (FTBs) fail to budget for a number of outgoings and soon find themselves living on very little money.

The bank claims that 44 per cent of FTBs completely forget to budget for legal fees, stamp duty and a property survey.

A further eight per cent do not put any cash aside for the cost of moving, while unexpected costs, such as damaged or broken appliances, are also not accounted for.

“It is too easy to quickly move on to thoughts of redecorating and building a new conservatory as soon as the offer is accepted, failing to factor in all the costs of a new home,” commented Gary Lumby, head of retail at Yorkshire Bank.

“Overlooking costs such as surveys and stamp duty is asking for trouble when, as our survey suggests, there are likely to be less predictable expenses as well.”

Yorkshire Bank’s research found that the majority of people do put money aside for redecorating when they move into a new home.

A total of 76 per cent of home owners fit a new kitchen and bathroom within the first year of moving into a property and this is another cost that FTBs must consider.

Tags: total, well."yorkshire bank research, FTBs, outgoings, trouble, yorkshire bank, unexpected costs, stamp duty

Fifth paying higher stamp duty

Almost a fifth of us are being forced to pay stamp duty at higher rates because house prices are soaring.

That is according to Halifax which says that the government should act by moving the stamp duty thresholds so that they better reflect the current housing market.

The bank says that in the past five years the number of homes in England and Wales which have been sold for more than £250,000 has increased fourfold.

Halifax points out that this means 19 per cent of homebuyers are paying at least three per cent tax, a vast increase compared to the six per cent who were doing so in 2001.

“Stamp duty revenue raised from home sales continues to rise rapidly,” said Tim Crawford from Halifax.

“Bracket creep has been a key factor as a growing percentage of property sales now occur above the higher stamp duty thresholds of £250,000 and £500,000, which have not been changed since their introduction in 1997.

“Nearly a quarter of postcode districts in England and Wales now have an average price above the three per cent stamp duty threshold of £250,000, compared to only one in 20 districts five years ago,” he added.

Stamp duty is only applicable to house sales above the £125,000 threshold, with buyers paying a one per cent tax. The higher duty comes in when a property is bought for £250,000, while an even higher duty of four per cent is levied on properties above £500,000.

Tags: england, percentage, higher duty, stamp, finance, property