Tories applauded Chancellor Philip Hammond’s Budget plan to abolish stamp duty in order to help first-time home buyers – but according to experts, the move is likely to push housing prices higher.
The Office for Budget Responsibility (OBR) – the Treasury auditor – predicts that Hammond’s decision will probably ramp up prices up by about 0.3%, and will therefore mainly benefit those who already own properties. Some buyers with smaller deposits may be able to borrow more, “allowing them to buy properties that they otherwise could not afford – but more expensively”, the OBR says.
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