FISCUS MORTGAGES - INFORMATION AND ADVICE

1 out of 4 first time buyers have problems with Stamp Duty

11-Jan-2005

25% of first time buyers found the spiralling cost of stamp duty a major problem with four times as many buyers affected by stamp duty now as 30 years ago

Latest research from the Alliance & Leicester states only half of first time buyers realise that stamp duty is additional expense after beginning the mortgage buying process meaning that stamp duty generall wasn’t factored into their initial budgets:

• 25% discovered that stamp duty could hold up their attempts to get on the property ladder when they were looking for their mortgage
• 5% realised stamp duty would have an impact on their budget following speaking to their solicitor
• 5% only knew the cost after they had received their mortgage offer

In comparing the generations of house buyers - only 6.5% of first-time buyers 30 years ago said that stamp duty was an issue, however 30% of todays first time buyers have problems with the tax.

Stephen Leonard A&L Director of Mortgages, is quoted as saying: “Worryingly, for those potential home owners who are looking to buy a property within the next 12 months, just under two thirds (63%) have not even thought about paying stamp duty, and almost a third (30%) don’t even know what it is... Clearly home movers, especially first time buyers, view stamp duty as prohibitive."

Stephen continues: "First time buyers especially need to do their sums and know the total cost of buying a house. As more properties fall within the higher stamp duty bands, the more important it becomes for potential home owners to realise that stamp duty is a sizeable proportion of the overall cost”

Regionally speaking the number of first time buyers affected by stamp duty is:

• South West - 15%
• London - 14%
• South East - 13%

These areas were hardest hit by stamp duty costs indicating it is directly related to property prices since these areas usually have the highest prices in the UK.