First-time buyers 'the big winners of the Budget'

Posted: 25 Mar 2010 09:33:23 GMT

First-time buyers will no doubt be pleased to hear that they are the big winners from yesterday's (March 24th) Budget announcement, according to one expert.

However, Ed Bowsher, head of consumer finance at lovemoney.com, says that while this group of would-be homeowners will be the "biggest winners", house prices still need to come down.

"The chancellor's measure may boost house prices, so it's not unambiguously good news for young homebuyers," he states.

In his Budget speech yesterday, Alistair Darling announced that the current stamp duty threshold will double for first-time buyers until the end of 2011, meaning tax will not be paid on any property below the value of £250,000.

However, Mr Bowsher goes on to add that the biggest losers will be those selling homes valued at more than £1 million, who will now have to pay a five per cent stamp duty rate.

According to the chancellor, this measure is to ensure public finances are not burdened with the first-time buyer tax relief.

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