Stamp duty

Stamp duty changes boost millennial confidence



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Almost two-thirds of millennials saving for a house deposit (58%) are more confident about reaching their goal following the chancellor's stamp duty changes announced in the Autumn Budget, according to a new study.

The latest sentiment research from Foresters Friendly Society has revealed that around one in seven millennials (17%) were much more confident following the announcement.

While three-quarters of this demographic (75%) have heard of the Lifetime Isa, only 11% of those eligible have taken advantage of it.

The report indicates that young savers appear to have an appetite for saving options that offer limited risk, but also weaker returns.

The Lifetime Isa (9%) sits near the bottom of the list of preferable saving vehicles, just ahead of stocks and shares (5%).

Savings accounts (43%), cash Isas (27%) and current accounts (24%) were the most popular options.

Paul Osborn, chief executive for Foresters Friendly Society, said: “As young people continue to strive to get on the housing ladder, it’s hugely important that they use the most suitable products to help them achieve their savings goals.
 
“While economic uncertainty tends to push people towards options deemed as lower risk, doing so can mean forfeiting much-needed returns and makes the effort of saving for a house deposit feel even more of a struggle.

“The 25% government bonus offers significant savings support at a time when inflation continues to outstrip wage growth and is putting pressure on people’s savings.”

 

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