The change to stamp duty legislation has helped almost 70,000 first-time buyers (FTBs) get on the housing ladder.
The government released official statistics that showed 69,000 homebuyers benefited from the abolition of the levy on properties worth less than £300,000 for those who have not previously bought a house or flat.
Financial secretary to the Treasury Mel Stride said: “I’m proud that the cut to stamp duty for first-time buyers is helping to realise the dream of home ownership for a new generation, alongside building more homes in the right areas, and generous schemes such as the Lifetime ISA and Help to Buy.”
In the autumn Budget last year, chancellor Philip Hammond announced no stamp duty will be paid for the first £300,000 on houses up to the value of £500,000.
It is expected this will benefit 95 per cent of FTBs, and four-fifths will not have to pay the tax at all.
Those purchasing a property over £300,000 will have to pay five per cent on the amount above this, and FTBs buying a home over £500,000 will receive no exemption to stamp duty.
This relief will be greatly received by FTBs who already struggle to raise enough deposit for their first home purchase. Instead, they can save some of their hard-earned cash for renovations to their new property.
Building extensions in Watford, having a loft conversion or a new kitchen would help them create their dream home, while also adding considerable value to their new equity.
Indeed, the Federation of Master Builders and HomeOwners Alliance recently revealed removing an internal wall to create an open plan kitchen-diner would add £48,417 and take just a week to complete.
Such renovation work would also save FTBs from buying a bigger, more modernised property in the future and then having to spend a considerable amount of money on stamp duty for their second home.