Stamp duty for southern first-time buyers exceeds A?7,500

a�?Stamp

Property website, SmartNewHomes.com, estimates that stamp duty for those buying a first home in the South of England averages A?7,533. London first-time buyers are paying the most, at an average of A?12,184.

The figure for the south is almost five time higher than in the north of the country, while in the East Midlands stamp duty costs those getting a foot on the property ladder a mere A?2,130.

David Bexon, managing director at the website, points out that average new home price in the south-west, south-east and London falls into the 3% stamp duty threshold.

The current A?250,000 and A?500,001 stamp duty bands have been in place since July 1997, since when the percentage charged on properties in the A?250,000 to A?500,001 band has doubled from 1.5% to 3%. For properties above A?500,000 it has doubled from 2% to 4%.

This month’s Budget disappointed both house purchasers and mortgage lenders who have been calling for a reform of the tax.

The Chancellor’s only concession was to those who will have an opportunity to purchase their first home through a shared equity scheme. Stamp duty will not be payable until they own 80% of the equity in their homes.

Recent research from Halifax, the UK’s largest mortgage lender, reveals that last year the average first-time buyer paid stamp duty in 99% of local authorities in the south of the UK.


Comments (0)

Trackback URL | Comments RSS Feed

There are no comments yet. Why not be the first to speak your mind.

Comments are closed.