Stamp duty 'forces' relocation on homebuyers

09-Mar-2007

Many homebuyers - which may include first time buyers - are being forced to relocate away from friends and family members to avoid paying stamp duty on properties over £125,000, it has been claimed.

According to SmartNewHomes.com, although properties under the stamp duty threshold are still available in areas such as Yorkshire, the east Midlands and Wales, homebuyers - such as first time buyers - in London can now no longer find a home under the £125,000 limit.

Indeed, although house prices in London continue to grow at an annualised rate of 5.25 per cent, prices in the West Midlands and Wales have either started to fall or have remained stagnant.

Outside of London, in areas such as East Anglia and parts of the south-east, homebuyers are finding it difficult to secure a suitable property.

To find out about the different ways of financing a first home, see our section ‘Affording Your First Home’.

"New home buyers can get a lot more for their money in the north of the UK, however it is startling to see the widening price gap that is emerging," said David Bexon, managing director of SmartNewHomes.com.

In related news, across England and Wales one out of every five properties is now priced over the £250,000 stamp duty band, according to research by Halifax.

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