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January 2, 2008

Stamp duty higher in the south

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by Kay Mitchell

Stamp duty higher in the south

According to mform.co.uk, the online mortgage firm, homebuyers in the south of the country are paying over 3 times as much stamp duty than those in the north of the country.

Stamp duty is charged at 1% of the sale price of properties worth between £125,000 and £250,000, 3% on homes between £250,000 and £500,000 and 4% on those worth more than £500,000.

Gordon Brown has been urged to raise the threshold for the stamp duty. Prior to 1997, the average homebuyer paid no stamp duty on their first home. However, now first-time buyers have to pay the Treasury £1,600 on average.

mform.co.uk also said during 2006-07, those purchasing a home in London, the south east and south west and east of England paid an average of £6,280 in stamp duty – 25% of their annual earnings.

However, the average stamp duty was £1,994 in the midlands, the north of England and Scotland – 10% of their annual earnings.

A spokesperson for mform.co.uk said stamp duty adds considerably to the expense of moving home and the housing market boom has meant an increasing amount of people are paying stamp duty. Their analysis shows there is a massive North-South divide.


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