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The average stamp duty bill for FTBs has almost doubled over the last five years, reveal new figures from Halifax…
The average bill in 2007 was £1,751 compared with £960 in 2002 – a rise of 82%. In the south-east, south-west and east of England almost all first-time buyers paid stamp duty, while in northern regions only 42% were liable, it said. The Treasury pointed out that half of first-time buyers will pay no stamp duty this year. The lowest, 1% tax band hits homes worth between £125,000 and £250,000.
Homes valued between £250,000 and £500,000 attract a 3% charge and properties worth more than that are taxed at 4%. Although the government has raised the threshold at which buyers pay 1%, it has not kept pace with the surge in house prices.
Martin Ellis, Halifax chief economist, commented: "Stamp duty has again become an issue for first-time buyers because the stamp duty thresholds have not kept pace with house price inflation. We call on all political parties to raise the stamp duty thresholds to compensate for house price inflation over the past decade," he added.
But the government defended its record, with a Treasury spokesman arguing: "Half of all first-time homebuyers and around two-fifths of all homebuyers will pay no Stamp Duty Land Tax this year".
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