Average stamp duty bill doubles in 5 years

Permalink: Average stamp duty bill doubles in 5 years
by Kay Murchie

Mortgage lender Halifax has said the average stamp duty bill for first-time house buyers has nearly doubled to an average of £1,751 in only 5 years.

Between 2002 and 2007, the average amount of duty paid by first-time buyers increased by 82%, said the Halifax.

The largest increase was in London where property prices are notably higher, the average stamp duty bill has rocketed to £8,675.

Five years ago, just one in 50 purchased a property which cost more than the higher rate threshold of £250,000.

In the south-east, south-west and east of England, nearly all first-time buyers paid stamp duty, while in northern regions only 42% were eligible to pay the tax, said the Halifax.

The figures add to requests already made by the National Association of Estate Agents (NAEA) to revise the threshold in his first budget on Wednesday.

Figures show the Treasury made £6.4 billion from stamp duty last year.

A spokesperson for the Treasury said half of all first-time buyers and around two-fifths of all homebuyers will pay no stamp duty this year.