First time home buyer news: Stamp duty still catches aspiring homeowners

03-Jul-2006

The last Budget's £5,000 increase in the stamp duty threshold has not helped first time buyers escape the tax, new figures show.

In fact, the number of first time buyers likely to pay stamp duty has doubled since last year, the study from Alliance & Leicester indicated.

A total of 61 per cent of first time buyers are now likely to go over the stamp duty threshold of £125,000, compared to 41 per cent of aspiring homeowners looking to spend more than the £120,000 threshold in 2005.

Stephen Leonard, director of mortgages at Alliance & Leicester, said: "Despite house prices rising by just over £3,000 in the last year, first time buyers seem to be setting their sights much higher."

The study also dispelled the typical idea of struggling first time buyers in their 20s and 30s, revealing that a quarter of over-50s have not yet made it onto the first rung of the property ladder due to a lack of affordable housing.

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