Government must review Stamp Duty

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by Kay Murchie

It is believed by many analysts that interest rates will increase further over the next few years and with first-time buyers already struggling to save money for a deposit, they also have to find over £1,000 to pay stamp duty.

A spokesperson for Bradford & Bingley has said that the Government now really needs to review this stealth tax. Stamp Duty was never intended to be a tax on first time buyers but a vast proportion are affected by it. It is getting in the way of them getting a foot on the property ladder.

Figures from the Council of Mortgage Lenders have revealed that, in May, a record 60% of first time buyers were eligible to pay the tax.

According to research by Bradford & Bingley, first time buyers remain anxious about buying a property. Almost 50% are worried that house prices will become even more unaffordable and 25% believe that if they don’t buy now, they never will.

Many people are giving up holidays and nights out, working longer hours and asking for assistance from their families to make that first step up onto the property ladder. The figures also show that 35% of parents are withdrawing savings, re-mortgaging their house or changing their way of life to help their children buy a house.