Members of the British government are proposing to give a tax break to first time home buyers. With stamp taxes slowing the home buying market, some members are suggesting exempting first time buyers from these taxes may stimulate the housing market and gain favor with younger voters most likely to benefit from the policy. This is the second major change suggested to benefit younger voters, coming after a proposal to cut pension tax breaks to fund possible student loan forgiveness programs.
Key Takeaways:
- In England, high costs associated with stamp duty is prohibitive for first-time home buyers, particularly those who intend to purchase bigger homes.
- High costs for first-time buyers is a serious concern because younger buyers are having a particularly hard time affording the mortgages, resulting in a decline in the number of first-time purchases.
- While reducing stamp duty will certainly help to reduce costs for first-time buyers, this measure is not enough by itself to ensure affordable homes for the younger generation.
“Conservative backbench MPs are lobbying the Chancellor Philip Hammond to offer first-time buyers a stamp duty holiday as part of sweeping measures to entice younger voters in the Budget on 22 November.”