Twitter Facebook RSS FEEDS

Stamp duty cut for first-time buyers 'urgent'

Wednesday, 5 March 2008 12:00 AM

The New Homes Marketing Board (NHMB) is calling on the government to scrap stamp duty for first-time buyers.

With chancellor Alistair Darling's first budget just days away the organisation - which promotes the activities of housebuilders to consumers - views the reduction as a matter of urgency.

"As I have said many times in recent years, existing stamp duty levels are in need of major review and I urge the chancellor to take the forthcoming budget opportunity to get rid of stamp duty for first-time buyers," said David Pretty, chairman of the NHMB.

"It would be a welcome boost to hard-pressed youngsters and also to the wider housing market."

According to the organisation the current threshold - which starts at one per cent above £125,000 and rises to three per cent over £250,000 - represents a regressive tax on those who can least afford it.

NHMB research finds stamp duty adds an average of £1,750 to the cost of a first property, with the figure increasing to some £7,500 in parts of the south-east and London.

"Increasing the threshold to £250,000 for first-time buyers would take the vast majority of them out of this tax trap and provide a much-needed fillip to their stretched financial resources. What's more, the threshold should be reviewed every five years to ensure it stays in line with inflation," continued Mr Pretty.

"I believe this stamp duty burden on young buyers needs to be tackled decisively, just as it has been recently in the Republic of Ireland."

Stamp duty in Ireland was reformed last year following similar pressure.

Under the new system seven rates were replaced with two: a seven per cent charge on properties from ?125,000 (£94,000) to ?1million (£760,000), and a nine per cent rate above ?1million.

Without such a change first-time buyers may miss the potential benefits of a potential moderation in UK house prices.

Any advantage in falling prices - which might normally ease the situation for young homebuyers - could be cancelled out by the recent tightening of lending criteria and reduction in funds by lenders who consider first-timers a high-risk group.

Related stories

Stamp duty cut for first-time buyers 'urgent'

Stamp duty cut for first-time buyers 'urgent'

Stamp duty cut for first-time buyers 'urgent'

 Many first-time-buyers are rushing to take advantage of the stamp duty concession which runs out in March. Image:Liquid

First-time buyers bid to beat stamp duty deadline

December saw rise in mortgage lending to first-timers ahead of end of holiday in March, says CML.
Chancellor George Osborne gave his autumn statement to parliament today.

Osborne ends Stamp Duty holiday for first-time buyers

George Osborne decision to end Stamp Duty holiday branded "disappointing" by CML.

 George Osborne's stamp duty decisions have not been popular with the NAEA. Image:Allstar

Stamp duty windfall tops £1bn

Stamp duty brought in a £1bn windfall for the government last year, prompting calls for the stamp duty holiday for first time buyers to be reinstated.
Stamp duty threshold increase 'pointless for FTBs'

Stamp duty break 'makes no difference to first-time buyers'

Stamp duty break 'makes no difference to first-time buyers'

 Lending to first-time buyers may have increased, but so have their mortgage costs. Image:Thinkstock

Boost for first-time buyers and NewBuy

More loans available for first step on the property ladder as Halifax reveals details of mortgages for new-build homes.

The reductions apply to three-year fixed rate mortgages.

Banks cut mortgage rates for first-time buyers

Yorkshire and Clydesdale offer new rates on 90 per cent and 95 per cent loans.

 In the market as a whole, new applicants were up 18 per cent but new instructions to sell rose only three per cent. Image:Thinkstock

Well-heeled buyers not put off by stamp duty rises

Prices for prime central London property rise another 1.1 per cent in April, says Knight Frank.
Mortgage loan agreement contract with house keys

Number of first-time buyers increases

Over 18,000 first-time buyers secured mortgages in June – nearly a third more than in May.

 38 per cent of all properties in the North East are valued below the £125,000 threshold. Image:Thinkstock

Buyers can beat stamp duty on one in five homes

Thousands of homes will be exempt from stamp duty even after the holiday ends, says FindaProperty.com.

Search property

Headlines

Directory

Alaris

Alaris Logo
Alaris specialise in quality Bathrooms and Kitchens along with many other unique products for your home. The range of kitchens, kitchen worktops and bathrooms is extensive and the highest quality so you are sure to find what you want. New bathroom furniture, bathroom suites, taps, showers and cabinets are added regularly.

Bathrooms365

Bathrooms365 Logo
Bathroom365 supply all areas of your new bathroom - leading-edge designed bathroom suites, stylish bathroom taps and showers, all styles and forms of shower enclosures and a vast collection of bathroom furniture.

Fitmykitchen

Fitmykitchen Logo
Fitmykitchen are specialist suppliers of kitchen appliances, sink taps, waste bins and furniture. So whatever you want from kitchen sink taps to waste bins look no further than fitmykitchen, UK, the specialist suppliers of kitchen appliances, stainless steel sink taps, waste bins and kitchen furniture.

MyStampDuty

MyStampDuty Logo
We help people buying property all over the UK to minimise Stamp Duty Land Tax on residential and commercial property. If you are looking at purchasing a new home or business premises over £500,000, contact us today by completing the form on the right

Oak Furniture Land

Oak Furniture Land Logo
For hardwood furniture, including Solid Oak, Mango, Mahogany, Sheesham, Acacia, Ash and Birch, look no further than Oak Furniture Land.

Rated People

Rated People Logo
Whatever type of home improvement or garden remodelling project you have, Rated People can help you to identify the right tradesmen for the job in a way that is quick, easy, convenient and, as it is based on real-life recommendations, trustworthy.

Residential Land

Residential Land Logo
If you are looking for short or long term rentals in Central London, Residential Land have a portfolio of over 1200 flats and houses in the best postcodes across the Capital.

Simply Bedrooms

Simply Bedrooms Logo
Simply Bedrooms, a part of Sleepwell Bedrooms Ltd, supplying quality beds, wardrobes, sliding door wardrobes and bedroom furniture at low prices and great service, London and Home Counties Specialists.

Door Handles UK

Door Handles UK Logo
Door Handles UK is the UK's largest online range of Door Handle accessories, Door Hinges, Locks and Latches and so much more and all at genuine internet prices. We have a wide range of Chrome, Brass and Glass Crystal Mortice door knobs in both traditional and contemporary designs, whatever your taste and budget you will find a design to suit.

Woodlands Furniture

Woodlands Furniture Logo
We are an established family business situated in rural Herefordshire specialising in beautiful handcrafted classic reproduction furniture. Our comprehensive ranges are readily available from stock.

WowBBQ

WowBBQ Logo
Welcome to the World of Weber. We are the largest independent online Weber BBQ retailer in the United Kingdom. WOWbbq.co.uk is a Weber Partner Store and can give you the best advice for all your Weber BBQ needs.

Join our directory aboutproperty.co.uk

Twitter

Join the conversation at #aboutproperty

Directory articles

A guide to finding the right kitchen sink

When redesigning a kitchen or giving the room a makeover, it is important not to forget about the less obvious aspects of the space. Kitchen sinks are an essential fitting, but often overlooked, despite the fact there is a wide choice of styles available.

Useful tips to help find a flat in London

Looking for flats in London can be a frustrating process, given the capital's size, demand for rental accommodation and varying prices. It is vital, therefore, that you do plenty of research and act quickly to ensure you get the place that you want.

What do you need to consider when buying a mattress?

If you looking for a new mattress, you need to get the decision right, as getting it wrong could impact on your overall health and wellbeing. As well as comfort and size, you also need to consider other points, such as any health issues you may have.