As Stamp Duty Hits First Time Buyers Again Mortgage Lending Drops Drastically


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Published: June 19th 2012
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Back in 2010 the Uk Government introduced a tax holiday for house buyers purchasing property between £125,000 and £250,000 so that they did not need to pay the usual 1%!s(MISSING)tamp duty. This saved house buyers around £2000 on average and helped with the large costs involved in buying a house and moving home. It was mainly targeted at first time buyers who are finding it increasingly difficult to get on the property ladder.



However in March 2012 this tax exemption stopped and as a result the amount of new mortgages given in April 2012, compared to March 2012 dropped by 70%!!(MISSING) First time buyers accounted for around 50%!o(MISSING)f this drop.



In monetary terms there was £2 billion less lent through mortgages and nearly 20,000 less mortgages given.



With rising unemployment, economic uncertainty, fears over the Euro zone and with many people finding they have negative equity in their homes due to falling prices, the number of people buying property remains at an all time low. In an effort to boost house sales, the Government has introduced various schemes for first time buyers in conjunction with developers but many of these have receive much criticism.



House sellers are knocking on average £20,000 off the price of their house to try and entice buyers. But for those needing a mortgage, raising the larger deposits now needed is often impossible. Even if they manage to get the deposit together, there are such stringent lending conditions that many cannot get a mortgage.



Whilst 80%!o(MISSING)f people dream of owning their own home, many are now finding they are having to rent instead of buy.



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