First time buyers given Budget boost

17-Mar-2005

A number of new measures have been introduced in Chancellor Gordon Brown's ninth Budget aimed at getting more first time buyers in to the property market.

Stating that the government is committed to helping young people get a foot onto the property ladder, Mr Brown unveiled his proposals to take some of the added costs out of the overall expenditure of buying a house.

Following increasing pressure in recent weeks from consumer groups and industry professionals, Mr Brown announced plans to to double the stamp duty threshold, taking it from its current position of £60,000 to £120,000.

That move has provided relief for first time buyers, although some in the property industry will feel that the increase is not enough, due to the rate at which prices have increased during the last ten years.

Mr Brown also revealed plans to raise the threshold for inheritance tax, so that it will increase incrementally over the next few years, from just over £260,000 this year to reach £300,000 by 2008.

According to the chancellor, the changes to the inheritance tax threshold will ensure that 94 per cent of people in the UK will not have to pay the levy at all, thereby providing younger buyers with a better opportunity of getting onto the property ladder.

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