First-time Buyers Act to Avoid Stamp Duty – CML

According to the latest report published by the Council of Mortgage Lenders, first time buyers have become more active in the past month of 2011 trying to get on the property ladder before the end of the stamp duty holiday.

As such, there were 18,700 mortgages for first-time buyers in December 2011, which is 7% up from the level seen in November 2011 and 14% up from that seen in December 2010.

Commenting on the findings, director general of the CML, Paul Smee, said: "We have been expecting a flow of first-time buyers on to the market, as the stamp duty exemption ends in March, and December's figures appear to show this has now begun."

He, however, highlighted that the level of mortgage lending to first-time buyers might significantly shrink in 2012 because of the debt crisis in the eurozone.

Let us remind that the stamp duty holiday ends on March, 24th and a 1% rate will be reintroduced on properties priced between 125,000 and 250,000 pounds.