Mortgage firms such as Alliance & Leicester are urging the concerned ministry to do away with stamp duty tax for first time buyers, as research have shown that these set of buyers have just 8 per cent chance of buying a property under £60,000, and thereby not falling under stamp duty bracket.
But 10 years ago, the situation was quite different, as there was over a one in two chance, the research said.
Stephen Leonard, the director of mortgages, savings and investment products at Alliance & Leicester said with first time buyer activity at a 20 year low, scarpping stamp duty tax would do good to these people.
Research showed that last year, combining England and Wales, only 99,234 properties were sold under the £60,000 stamp duty bracket. Interstingly, only 6 per cent of first time buyer properties was sold for under £60,000 last year, the research said.
The situation is much worse in London where there has been a 99.7 per cent drop in the number of houses available under £60,000, the research said, adding that just 144 properties was sold under £60,000 last year.
The comparison shows that nearly three quarters of first time buyer properties, such as flats and maisonettes, being sold under the stamp duty bracket 10 years ago.
Leonard said the concerned ministry has a great opportunity to do away with stamp duty tax for first time buyers in this year's budget.
Posted
on : Tue, 15 Mar 2005 00:00 GMT | Loans News
By : Paula Jenkins
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