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Budget 2017: What does the stamp duty change mean?

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Stamp duty will be abolished immediately for first-time buyers purchasing a home of up to £300,000, Chancellor Philip Hammond has said.In London and other high price areas, first-time buyers will be able to buy a house worth up to £500,000 and pay no stamp duty on the first £300,000.This means that 80% of first-time buyers will pay no stamp duty, he said.The change will apply in England and Northern Ireland, and in Wales up until the end of March, but not in Scotland.”This is our plan to deliver on the pledge we have made to the next generation that the dream of home ownership will become a reality in this country once again,” Mr Hammond said.Estate agent Savills estimates that the average stamp duty bill for first-time buyers is about £2,700.For most first-time buyers, the deposit is the biggest up-front cost. The average deposit outside London is £24,000 and in London it is £72,000.Helping more people to buy their first home is part of a Conservative push to win back younger voters, many of whom opted for Labour at the last election.Home ownership has fallen in recent years, with 62.9% of the estimated 22.8m households in England being owner-occupiers in 2015-16, the Department for Communities and Local Government found. That is down from 70.9% in 2003.Just 20% of those aged 25 own a property, compared with 46% two decades ago, according to the Local Government Association. Almost half of those aged 24 to 34 in England pay rent to a private landlord.
Source: BBC