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There has been scant chance for first-time buyers to celebrate over the last two years but the latest Budget did make them cheer – the Chancellor announced tax breaks for those struggling to get onto the property ladder.

In his last Budget before the general election, Chancellor Alistair Darling announced vote winning tax cuts for those who have failed to be able to afford their first home. For two years he will stop stamp duty levies on all properties under £250,000 bought by first-time buyers.

This will save first-time buyers thousands, giving them more money to add to their deposit and giving them a better chance of getting a mortgage.

David Hollingworth, head of communications for London & Country Mortgages says: "Removing the burden of stamp duty all the way up to £250,000 will be a real boost to the beleaguered first-time buyer. They are currently struggling with the need to raise a significant deposit to secure a mortgage, so an incentive that could be worth as much as £2,500 has to be a positive move.

"Whilst, it may not lead to a sudden surge of first-time buyers entering the market it will go some way to easing their path to home ownership."

Karen Barrett, chief executive of unbiased.co.uk, says that 42% of all people searching for a whole of market mortgage adviser on her website last month were first-time buyers, which she says has remained the number one advice driver since the start of 2010.

She says: "After a year of economic turbulence, consumers are more aware than ever of the importance of being financially educated. First-time buyers in particular need to ensure they understand the added costs involved in the house purchase process. A whole of market mortgage adviser can make sure first-time buyers are guided through the mortgage process and aware of all the costs involved, including stamp duty."

SOURCE: HM Treasury, Unbiased.co.uk, L&C, 24/03/10

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