Halifax is to pay the full stamp duty for first-time buyers (FTBs) purchasing properties between the value of £125,000 and £250,000.
For the second consecutive year, the bank will pay the bill, reducing costs for FTBs by up to £2,500.
In addition, for first time buyers who purchase a property below £125,001, they will receive £250 cashback.
Craig McKinlay, mortgage director, Halifax said: “We know that Stamp Duty can often be a cost that is overlooked, particularly by first time buyers who are focused on saving an initial deposit for a house. We helped ease the burden of Stamp Duty for over 14,000 first time buyers last year and we’re keen to do what we can to, once again, support those buying their first home, at what’s already an expensive time.”
Analysis by Halifax shows that 268,800 FTBs purchased a property last year, an increase of 23 per cent compared to 2012. FTBs accounting for 44 per cent of all property purchases in 2013 and 9 out of 10 first time buyers (91 per cent) purchased a property below £250,000 in 2013.
Nationally almost half (46 per cent) of home purchases by first time buyers were between £125,000 and £250,000. However, there were significant regional variations in the prices paid by first time buyers last year, with those in the South East (75 per cent) and South West (71 per cent) purchasing properties between £125,000 and £250,000. In contrast, only 14 per cent of first time buyers in Northern Ireland and 23 per cent in the North of the country purchased within this range.
| Table 1 – First time buyer purchases by Price Band – 2013 | |||||
|
|
Std Average Price (£) 2013 Q4 |
<£125k |
£125k-£250k |
£250k-£500k |
>£500k |
| North |
101,102 |
76% |
23% |
1% |
0% |
| Yorkshire and the Humber |
100,801 |
70% |
29% |
1% |
0% |
| North West |
105,114 |
67% |
31% |
1% |
0% |
| East Midlands |
113,780 |
65% |
33% |
1% |
0% |
| West Midlands |
116,378 |
58% |
40% |
2% |
0% |
| East Anglia |
127,308 |
38% |
59% |
3% |
0% |
| Wales |
120,140 |
69% |
29% |
1% |
0% |
| South West |
144,514 |
26% |
71% |
3% |
0% |
| South East |
177,245 |
13% |
75% |
11% |
1% |
| Greater London |
249,495 |
2% |
57% |
34% |
6% |
| Scotland |
84,197 |
68% |
30% |
2% |
0% |
| Northern Ireland |
82,209 |
85% |
14% |
0% |
0% |
| UK |
132,815 |
45% |
46% |
8% |
1% |
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