Monday 10th March 2008
First-time buyers (FTBs) in the UK are facing a greater financial burden from stamp duty than has previously been the case, it has emerged.
An 82 per cent rise in stamp duty paid by FTBs since 2002 is detected in information compiled from the Halifax house price index.
The financial services provider notes that the Greater London region has seen even greater increases to reach an average of £8,675.
Compared with the 2002 typical stamp duty level of £1,868 for FTBs, this is a 364 per cent growth, Halifax points out.
Martin Ellis, chief economist at the organisation, explains that the situation is not confined to the south of the country.
He says: "Stamp duty has again become an issue for FTBs because the stamp duty thresholds have not kept pace with house price inflation.
"FTBs in the south are most likely to pay but so too are a growing percentage in the north."
In previous figures, Halifax calculated that the £250,000 and £500,000 stamp duty thresholds would have risen significantly if they had been kept in line with inflation since their introduction in 1997.
By now, the statistics suggest the thresholds would have reached £720,000 and £1.44 million respectively.
When compared with 2002, the typical stamp duty bill is now equivalent to seven per cent of an individuals full-time earnings.
This is up from five per cent - but in the south-east the figure has grown from seven per cent to 23 per cent in the interim period following prolonged house price inflation.
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