Monday 3rd July 2006
The Council of Mortgage Lenders has called for changes in the way stamp duty is calculated, in order to improve affordability for first-time buyers.
Bernard Clarke from the Council of Mortgage Lenders said: "Stamp duty is one of the major factors in making property more affordable as increasing numbers of first time buyers would be considering buying a property above the stamp duty threshold."
"There are two reforms we would like to see. We would like to see a raised threshold in line with house prices," he continued. "We would also like to see it reformed so you dont have to pay tax at the highest rate on the whole purchase price of the property, you just pay the highest rate on the marginal amount over a tax threshold so it would work like the income tax."
The average price of a house in the UK is now £184,924 according to the BBC. This has increased 5.43 per cent in the last year.
Stamp duty land tax is paid by the purchaser on homes worth more than £125,000.
This threshold was increased in the last Budget, but calls have been made for the government to link the threshold to inflation as more first time buyers fall into the stamp duty net.
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