Stamp duty cut will give first time buyers in Kent 'a fighting chance' says property expert

The announcement was made in the same week that the Bank of England increased the base rate from 1.75% to 2.25% – the highest level since November 2008.
Credit: ITV News Meridian

An estate agent from Kent says he believes the stamp duty cut will give first time buyers a 'fighting chance' of getting onto the property ladder, amid soaring prices.

The government has announced it will cut stamp duty, raising the possibility of house prices being pushed even higher in the short term.

Chancellor Kwasi Kwarteng announced the cut as part of his mini-Budget unveiled today (Friday 23 September).

The threshold for stamp duty has been raised to £250,000 from its current £125,000 level.

Meanwhile the threshold for first-time buyers has been increased from £300,000 to £425,000.

Kevin Hanley, an estate agent covering Dartford, Gravesend and Medway said: "The property market in the UK is the busiest it's been in over 25 years.

"Today's announcement will hopefully increase demand for property currently on the market.

"The move is designed to stimulate the property market and help first-time buyers get a foot on the ladder, but it also risks driving up house prices.

"At the minute there's a lack of properties - and simply too many buyers to go around."

First-time buyers, who already paid no stamp duty on the first £300,000 of the price of a home, will see the threshold raised to £425,000. Credit: ITV News Meridian

Kevin added: "When we take that into consideration, it's harder now more than ever for first time buyers to get on the ladder and with this announcement this morning, I think many residents in our area will benefit from the stamp duty increase.

"When it comes to prices, we're finding a large increase all around the country. It's a supply and demand issue. So when we look at the fact there's simply too many buyers for what's available - it creates a bidding scenario.

"So first time buyers were generally getting outbidded, however by them now having this extra affordability from stamp duty - they should have more of a fighting chance."

Around 200,000 more people every year will be lifted out of paying stamp duty, the Government calculated.

A typical family moving into a semi-detached property will save £2,500 on stamp duty, it said.