BBC News

Stamp duty holiday ends, replaced by New Buy Guarantee

image captionThe stamp duty holiday was introduced in 2010 to help first time buyers

The stamp duty holiday for first-time house buyers has ended, meaning they will join others in paying 1% tax on properties worth more than £125,000.

The government says it ended the holiday because it had been ineffective in helping people to buy.

It is introducing a New Buy Guarantee scheme instead, which it says will be better at getting people on to the housing ladder.

The stamp duty holiday was introduced in 2010.

It allowed first-time buyers to save up to £2,500 on the purchase of their first home by exempting them from stamp duty on homes worth up to £250,000.

Under the New Buy Guarantee, the government and major house builders will guarantee part of the loan from banks to first-time buyers.

This is intended to help those with smaller deposits to get on the housing ladder.

The government also announced a new 7% rate on homes over £2m last week.

And it further outlined a clampdown on stamp duty avoidance at the higher end of the market.

More on this story

  • Stamp duty holiday ends at weekend