First-time buyers call for stamp duty review

Posted: 13 Mar 2007 14:00:03 GMT

House prices have risen so quickly in recent years that many first-time buyers are finding it increasingly difficult to find an affordable property

House prices have risen so quickly in recent years that many first-time buyers are finding it increasingly difficult to find an affordable property.

Any home that costs more than £125,000 is liable for stamp duty unless it is located in a designated "disadvantaged area".

Homes valued at between £125,000 and £250,000 are liable for a one per cent stamp duty taxation.

This can add between £12,500 and £25,000 to the price of a home, adding to the mortgage burden for many first time buyers who are struggling to purchase a home.

Figures from the Halifax Bank of Scotland (HBOS) indicate that 19 per cent of homebuyers had to pay stamp duty on property above the three per cent threshold in 2006, compared to six per cent in 2001.

The chancellor, Gordon Brown, will be announcing the budget on March 21st and many are campaigning for an increase in the threshold at which stamp duty is required.

However, industry experts predict that Mr Brown will only raise the stamp duty threshold to £130,000, disappointing many first time buyers.


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