Stamp duty 'should reflect house prices'

25-Feb-2008

Stamp duty thresholds should be a reflection of current house prices rather than remaining unchanged for long periods of time, according to Halifax.

The mortgage lender has called for the government to raise stamp duty thresholds in order to stay in line with the rise in property prices, which will be of note to first-time buyers.

Research conducted by Halifax has revealed that that the average home buyer had to pay a stamp duty bill of £1,971 in 2007, which translates as seven per cent of annual full-time earnings.

The study has shown that stamp duty stood at just five per cent of average earnings in 2002.

Martin Ellis, chief economist at Halifax, commented: "A growing number of home buyers are paying the equivalent of more than 20 per cent of local average annual earnings in residential stamp duty. This trend is most prevalent in the south of England. But, other parts of the country are being affected as well."

Halifax recently reported a record fall in owner-occupied houses in the UK.

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