First-time buyers hit by Stamp Duty changes

Estate agents Savills have today pointed out that the Government’s changes to the Stamp Duty regime mean that potential first-time house buyers could pay €2,500 more today than had they bought the same property on Monday.

Ronan O’ Driscoll, Director of the Residential at Savills Ireland said: "I welcome the Stamp Duty changes for the market because the new rates will undoubtedly help the market. The previous rates were penal, particularly for larger properties and we should start to see some more movement at the top end of the market as a result.

"It is however unfortunate that first time buyers have been hit with Stamp Duty. Prior to the budget, they were exempt. Over the years, previous FTBs had enjoyed cash benefits such as mortgage subsidies or a first time buyer's grant. Until yesterday, they had a Stamp duty exemption.

"Today, they pay Stamp Duty like everyone else."

The property experts say they have already seen an influx of calls from would-be clients who were, up until yesterday, considering entering into the property market, but are now realizing that the bill on any property purchase will have increased significantly.

On a typical property worth €250,000, a First Time Buyer will have to pay €2,500 more today than had they bought the same property on Monday.