First time buyers 'increasingly' liable for stamp duty

12-Oct-2006

First time buyers are increasingly likely to pay stamp duty, despite the recent threshold increase, it has emerged.

According to a recent report by the Council of Mortgage Lenders, around 56 per cent of first time buyers are now liable for the tax, despite the threshold being increased to £150,000 in 2005.

Industry experts are now calling for a revision of the tax.

"The structure of stamp duty is antique," said Jeremy Leaf, housing spokesman for the Royal Institution of Chartered Surveyors (Rics).

"This tax needs to catch up with the property market and house prices," he added.

In September, house prices rose faster than at any point over the last four years, according to a survey by Rics.

The survey indicates that house prices increased by 45.1 per cent, the biggest rise since October 2002.

First time buyers concerned about how an increase in interest rates might affect how much they would have to pay each month, should consult a good broker.

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