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Associations lobby over exclusion of shared ownership buyers from stamp duty cut

Housing associations have approached government to seek changes to the stamp duty cut after warnings that it currently excludes many shared ownership buyers.

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Stop excluding shared ownership buyers from stamp duty savings, associations say #ukhousing

Associations lobby government over shared ownership exclusion from stamp duty cut #ukhousing

Dialogue opens over stamp duty rules which exclude many shared ownership buyers #ukhousing

The government axed Stamp Duty Land Tax for first-time buyers purchasing properties of up to £300,000 in the headline move of the Autumn Budget.

And today prime minister Theresa May boasted that more than 16,000 buyers have saved money due to the cut since it was introduced in November.

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But many shared ownership buyers – particularly in London – will miss out on the savings because it is calculated according to the full value of the property.

For example, a buyer purchasing half of a £500,000 home in the capital will still pay around £2,500 in stamp duty despite purchasing only £250,000 of equity.

It is understood housing providers have approached the Homes and Communities Agency (HCA) and government to discuss alterations to the scheme and are hopeful of opening a dialogue.

Amy Nettleton, assistant development director at Aster Group and chair of the National Housing Group, said: “The end of Stamp Duty Land Tax on certain homes is a relief for many first-time buyers on the open market. For years this has been consistently highlighted as a blocker for those trying to get their foot on the ladder.

“The move gives thousands of pounds worth of relief for each homebuyer and it was one of many signs in the Budget that the government recognises the flaws in the market. However, failing to extend this measure to shared ownership could seriously impede the work going on to champion these homes. This is something the entire industry needs to be concerned about.

“For us, the key thing that shared ownership provides is another choice – important in a market where so many are stuck and unable to find the right solution for them. As a flexible option, it can cater to a range of different circumstances and could address the core affordability issue in many areas. But without the same tax break as open market homes, shared ownership will continue to be viewed by some as a ‘last resort’ rather than a viable option.”


Currently, shared ownership purchasers can chose to pay stamp duty on either the full market value of their new home or just the share they are purchasing.

But the cut announced in the Autumn Budget only applies to buyers using the full market valuation route.

This would allow buyers purchasing a home with a total value of less than £300,000 to benefit from the cut. However, when the full property exceeds £300,000 stamp duty will be collected – even if it is calculated by the value of the share.

Shared ownership is marketed particularly at buyers who would struggle to raise the initial cash for homeownership – such as the deposit and stamp duty costs.


  • Investment of £44bn in housebuilding in capital funding, loans and guarantees over the next five years to boost supply of skills, resources and land
  • Commitment to be building 300,000 homes a year by mid-2020s
  • £1.5bn package of changes to Universal Credit announced. This includes the scrapping of the seven-day waiting period at the beginning of a claim, making a full month’s advance available within five days of a claim for those that need it and allowing claimants on housing benefit to continue claiming for two weeks
  • Lift council borrowing caps in "high-demand areas"
  • A £125m increase over two years in Targeted Affordability Funding for Local Housing Allowance claimants in the private sector struggling to pay their rent
  • New money into Home Builders Fund
  • Extra £2.7bn for Housing Infrastructure Fund
  • Invest £400m in estate regeneration
  • £1.1bn on unlocking strategic sites
  • Stamp duty for first time buyers on properties worth up to £300k will be axed, while the first £300k on properties worth up to £500k will also be scrapped
  • Three new Housing First pilots announced for West Midlands, Manchester and Liverpool
  • Councils to be given the power to charge 100% council tax premium on empty properties
  • Government will launch a consultation to barriers to longer tenancies in the private rented sector
  • £38m for Kensington & Chelsea Council for mental health and counselling services, regeneration projects in areas surrounding Grenfell Tower and a new community space
  • Invest in five new garden towns
  • £125m increase in Targeted Affordability Funding for Local Housing Allowance claimants in the private sector struggling to pay rent

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