Nearly all London buyers face stamp duty |
11 2008 |
| The average first-time buyer (FTB) now pays stamp duty in all but one per cent of local authorities in the south, figures published today show. New research by Halifax also reveals that in 62 per cent of London boroughs, the typical FTB pays stamp duty at the higher rate. The report underlines the benefits of renting over buying. Across the UK as a whole, the average FTB spent £1,751 on stamp duty in 2007, which amounts to six per cent of average annual earnings. Five years ago, the average FTB stamp duty bill of £960 was equivalent to four per cent of earnings, showing that house price inflation is outstripping both income and changes to the duty threshold. The current £250,000 and £500,000 stamp duty bands date from July 1997, with buyers paying three per cent and four per cent respectively. In the 2005 Budget, the government increased the lowest stamp duty threshold from £60,000 to £120,000, and then again to £125,000 in March 2006. The number of buyers eligible to pay stamp duty in the south far exceeds that in the north, where just 42 per cent were compelled to do so in 2007.  |
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