| First to benefit are buyers buying a home under | | | | property between the £125,000 and |
| £175,000. Previously stamp duty was exempt | | | | £175,000 benchmark. A buyer may further |
| only for properties below £125,000 and now | | | | benefit by persuading a seller to lower their price to |
| stamp duty is payable only on properties over | | | | £175,000 and of course, save £1,750 in |
| £175,000. Stamp duty is 1% of the purchase | | | | stamp duty. For properties on the lower end between |
| price so that's £1,750 saved on a | | | | £125,00 and £175,000 a saving of |
| £175,000 property and the government | | | | £1,750 is more of a bonus rather than a major |
| estimates that this accounts for half of all property | | | | discount. First time buyers will benefit from the "free" |
| transactions. This measure will be in place for one | | | | loan and struggling homeowners can stay and rent |
| year. | | | | their homes instead of risking being repossessed. The |
| First time buyers whose households are earning less | | | | benefits should in turn pass down the line - more first |
| than £60,000 will be offered "free" loans of up | | | | time buyers will start more property chains and enable |
| to 30% of the property's value to buy new properties. | | | | more people to buy and sell. Less repossessions will |
| After five years there will be a fee to pay though | | | | keep undervalued properties off the market which will |
| more detail on this has yet to be provided. The loans | | | | contribute to stabilising house prices. |
| system is called HomeBuy Direct is to be run jointly by | | | | However, the main problem is still the difficulty in |
| the government and property developers. The key | | | | securing a mortgage with a larger deposit - instead of |
| concept here is that first time buyers will be able to | | | | the 5% figure prior to the credit crunch deposits of |
| enter the market and developers will have a market | | | | 10%, 15% or even 20% are required. Together with the |
| for their new builds and the UK needs more homes. | | | | rise in oil, gas and food prices, there is less money to |
| The third measure benefits existing homeowners who | | | | put aside for the deposit and so it takes longer to fill |
| can no longer afford their repayments. Councils and | | | | the pot. Furthermore confidence in the economy is |
| housing associations will be able to pay off the debt | | | | gloomy and a recession is still on the cards. |
| and then charge rent at a rate that is affordable. As a | | | | The measures are expected to help a small minority |
| result, the homeowner will not have to sell their | | | | of people and so help the market in a small way but |
| property. | | | | they are not expected to solve the problem. |
| The people that will benefit are those that want to buy | | | | |