First time buyers "fail to take advantage of stamp duty"

10-May-2005

Aspiring homeowners are being advised to make more of the recent changes to the stamp duty threshold.

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In his Budget speech earlier in the year, Chancellor Gordon Brown announced changes to the stamp duty threshold, so that buyers only start to pay the tax on properties worth over £120,000.

That was a doubling of the threshold, which had previously stood at just £60,000, and was designed to help more first time buyers get a foot on the property ladder by enabling them to save more money with which to find a deposit.

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The government had been lobbied to change the threshold because it was seen as a stumbling block to many aspiring first time buyers, as it would add significantly to the overall cost of purchasing a new home.

However, a recent study has discovered that the changes have so far had little impact, with few aspiring homeowners appearing ready to take advantage of the reduced cost.

According to Mortgage Advice Bureau, a number of estate agents have reported that a large proportion of first time buyers are currently unaware of the changes, meaning that those on a budget of around the £120,000 mark are failing to recognise the fact that as little as £1,000 under that budget could in fact bring substantial savings.

But the research also revealed that many areas in the UK now fall below the threshold, and as such first time buyers need to be looking into the possibilities offered by these regions.

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