Renting to remain best option until stamp duty laws change, experts suggest

02 2008
Until a radical overhaul of the stamp duty system is carried out, prospective first-time buyers are likely to remain priced out of the property market, leaving them with no option but to rent for the medium-to-long-term future.

That is according to a new report from the Royal Institution of Chartered Surveoyrs, which has argued that stamp duty needs to be abolished for those people trying to get a foot onto the property ladder.

The argument has also won the support of TV property expert Kirstie Allsopp, who has long maintained that the tax is a significant barrier for those looking to purchase rather than rent.

At present, buyers have to pay nothing for properties worth less than £125,000, with one per cent payable on those valued above this and below £150,000.

However, many people are struggling more with raising the necessary deposit and upfront costs for a home purchase, estimated to be around £25,000, according to recent reports, with growing numbers of professionals now preferring to rent a home rather than break the bank by attempting to buy.ADNFCR-1219-ID-18666448-ADNFCR

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