Stamp duty avoided by 50% of borrowers in September

Posted: 12 Nov 2008 11:36:04 GMT

The number of homebuyers who avoided paying stamp duty in September this year rose sharply, new findings have revealed.

According to data from the Council of Mortgage Lenders (CML), 51 per cent of borrowers avoided paying the tax, compared to 22 per cent during the same month in 2007.

The average amount borrowed by first-time buyers in September dropped from £108,000 in August to £104,500.

In addition, the research also indicated that the number of house purchase loans was 57 per cent lower in September this year compared to September 2007.

CML director general, Michael Coogan, commented: "While house purchase activity has reached exceptionally low levels, it is encouraging to see transaction costs lowered for a larger proportion of borrowers."

He went on to say that the government should think of more ways to help sellers and buyers in the difficult financial climate.

The government announced a stamp duty holiday on September 2nd, effective for one year, on all houses priced £175,000 and under.


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