Wipe-out stamp duty for first time buyers, expert suggests

01-Dec-2008

Stamp duty should be completely abolished to provide an added incentive for first time buyers (FTBs) to purchase property in the current economic climate, according to estate agent SW19.

Luke Bennett, founder and managing director at the Wimbledon-based firm, said that the added costs of stamp duty can make a significant difference to the cost of buying a new home.

Under government legislation introduced in September, Britons are exempt from paying the tax on homes which cost £175,000 or less.

Mr Bennett noted that a typical one or two bedroom flat in London costs £300,000, but buyers would have to pay a further £9,000 or £10,000 to cover stamp duty costs.

Although skilled negotiators might be able to knock up to £30,000 off the price of a property, they could still be paying more than the original value once stamp duty costs and interest are taken into account, he said.

"In the worst case it should be non-existent for FTBs; it's a massive amount of money if you think about it," Mr Bennett added.

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