Attempting to avoid stamp duty has led to exceptional demand for homes below the lower stamp duty threshold, according to SmartNewHomes.com.
The website claims around 40,000 potential buyers are searching for the 5,000 homes on their site that are valued below the £125,000 stamp duty bracket, meaning there are around eight buyers for every property in this range.
According to SmartNewHomes.com, while the stamp duty threshold has been doubled since 1997, from £60,000 to £125,000, average prices for first time buyers have almost trebled, from £54,133 in 1997 to £151, 803 in 2006.
David Bexon, managing director of SmartNewHomes.com, says: “A first time buyer, purchasing an averagely priced home in the south east would currently have to pay out £9,000 in stamp duty, in addition to paying legal fees and saving up a deposit – pushing the reality of owning a home for many, out of reach.”
SmartNewHomes.com has set up an online petition urging the Government to scrap stamp duty for first time buyers to help them out of renting and onto the property ladder.
Prime Minister Gordon Brown recently stated that Britain’s affordable housing crisis was to be one his top priorities, although scrapping stamp duty was not one of his proposed solutions.
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