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Stamp duty holiday for first time buyers to end soon

The National Association of Estate Agents has issued a reminder that exemption from Stamp Duty Land Tax for first time buyers is due to come to an end on Saturday 24th March 2012.

Wendy Evans Scott, President of the NAEA said: “With only two months remaining, first time buyers must act quickly to avoid paying Stamp Duty Land Tax on their first home purchase. If you’re currently in a chain and waiting to complete your purchase then make sure that others in the chain know about the end of the tax holiday too. Good communication with your solicitor can help move the process forward, helping you beat the 24th March cut-off.”

At the end of the exemption period, first time buyers will have to pay a 1% tax on house purchases valued between £125,000 and £250,000, and a 3% tax on purchases over £250,000.

Mrs Evans Scott continued: “First time buyers are key to a healthy property market. We hope to see the number of people completing the purchase of their first home continuing to increase through February and March, as many first time buyers are keen to purchase their first home before the tax exemption deadline.

“However, it is impossible to predict what impact the end of the tax exemption will have on first time buyers, particularly those on very tight budgets of under £250,000 for whom the 1% tax could be disastrous. The Government will need to monitor sales closely and consider other action to support the fragile first time buyer market.”