Stamp duty bills rise

Posted: 25 Feb 2008 11:09:53 GMT

UK stamp duty bills increased between 2002 and 2007, making it increasingly difficult for first-time buyers (FTBs) to make it onto the property ladder.

UK stamp duty bills increased between 2002 and 2007, making it increasingly difficult for first-time buyers (FTBs) to make it onto the property ladder.

Halifax has published a new report, revealing that the average bill stands at seven per cent of the average earnings.

According to the bank, 29 per cent of local authorities now have a typical stamp duty bill of more than 20 per cent of average earnings.

That is up on the five per cent of local authorities which were in the same situation in 2002.

Martin Ellis, chief economist at Halifax, wants the government to announce changes in order to help FTBs to purchase properties.

"A growing number of home buyers are paying the equivalent of more than 20 per cent of local average annual earnings in residential stamp duty. This trend is most prevalent in the south of England. But, other parts of the country are being affected as well," he said.

"The higher stamp duty thresholds have not been altered since their introduction a decade ago. We call on the government to raise all stamp duty thresholds to account for the rise in house prices over the past decade and to index for house price inflation in the future," continued Mr Ellis.

Many organizations, including the Council of Mortgage Lenders, have called on the government to raise the stamp duty threshold.

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