Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potentially detrimental effects of the extension of the stamp duty holiday on the ability of first-time buyers to purchase a home; and what steps he is taking with Cabinet colleagues to mitigate those effects.

The temporary SDLT relief was designed to stimulate immediate momentum in a property market where property transactions fell by as much as 50 per cent during the COVID-19 lockdown in March. This momentum in the property market has supported jobs which rely on custom from the property industry, such as retailers and tradespeople.

First Time Buyers will benefit from the increase in available properties and save up to an additional £10,000 in SDLT, on top of the £5,000 they could already save under First Time Buyers relief. When the nil rate band steps down to £250,000 in July, first-time buyers still benefit from their first-time buyer SDLT advantage.

The Government has also introduced help for first-time buyers, particularly those with smaller deposits, through the new mortgage guarantee scheme which will help to re-introduce 95% loan to value mortgage products to first-time buyers.