What does the Budget mean for shared ownership?
Property ownership has been a prominent point for the government in the recent Budgets; last November Chancellor Philip Hammond announced the removal of Stamp Duty Land Tax (SDLT) for first time buyers on properties up to £300,000. In yesterday’s Budget, Mr Hammond announced that SDLT will also be scrapped for those buying through shared ownership. Sarah Brooks, Residential Property Partner, explains the changes and the impact on those trying to get onto the property ladder.
The removal of SDLT for shared ownership purchases is applicable for first time buyers in England and Wales on properties of up to £500,000. The change is with immediate effect and it will be retrospective; applying to all purchases that have occurred since the last Budget on 22nd November 2017.
What is shared ownership?
When buying a property through shared ownership you own a portion of the property and pay rent on the rest which would normally be owned by a local authority landlord or housing association. “Shared ownership has always been an attractive proposition as the deposit tends to be lower and it is more cost effective than renting,” explains Sarah. “Buyers initially buy between 25% to 75% of the property but there is the option to purchase more in the future.”
You don’t have to be a first time buyer to purchase through shared ownership; however the changes brought in from yesterday’s Budget only apply to first time buyers, i.e. those who have never owned a property before. If you are a first time buyer buying with a non first time buyer the exemption will not apply.
How do I get a refund on my stamp duty?
If you have bought a property through shared ownership since the Budget last year and so are now due a refund on the SDLT, you will need to apply for this through the government website here.
Sarah concludes, “The abolishment of SDLT for first time buyers last year has reportedly helped 121,500 people onto the property ladder, which is an excellent step in the right direction of supporting our property market. The number of first time buyers is now at an 11 year high, and this announcement shows that the government are taking property ownership seriously and sees the real benefits of offering different purchase options for first time buyers.”
If you are a first time buyer interested in shared ownership, you can find out more on our website here, or by contacting our team on email@example.com or calling your local office:
Fareham: 01329 222096
Portsmouth: 02392 776549
Southampton: 02380 717439
Chandler's Ford: 023 8071 7467