Increasing numbers of first-time buyers across the UK are being hit by stamp duty. This tax, which was originally designed to target people buying only the most expensive homes, now affects three in every four first-time buyers.

Nationwide’s regional stamp duty report* published today, shows the impact this tax is having on first-time buyers across the UK.

The Society has called on the government to take action to help already hard pressed first-time buyers to get onto the housing ladder.

Since 1993 stamp duty has been applied to homes costing more than £60,000. Had this threshold been index-linked since then, stamp duty would now begin at £150,000 and 80% of first-time buyers would be exempt from this additional tax. Instead, across the UK, 75% of first-time buyers now pay stamp duty. Nationwide believes the threshold for stamp duty should be increased to £150,000 for first-time buyers.

Stuart Bernau, Nationwide director, said: "House prices have risen sharply in recent years and this, plus other factors such as rising levels of debt among graduates, is seriously affecting young people’s ability to buy their first home. This has led to the number of first-time buyers being at its lowest level for over 20 years while the age of a typical first-time buyer has risen from 27 to 31 over the past 10 years.

"We believe there is an urgent need for the government to provide some support for this hard pressed group. The Council of Mortgage Lenders has already proposed a move to a more graduated system of stamp duty to smooth out the impact of this tax for people buying more expensive properties. We support this and believe it is possible to combine this approach with our proposals to provide relief for first-time buyers in a way that would be tax neutral."

You can download the Stamp Duty Report in Adobe PDF format here:
http://www.nationwide.co.uk/mediacentre/pdf/regional_stamp_duty_report.pdf