You are here: Home - Remortgage - News -

25% of home-buyers face stamp duty bill of £7,500 or more

Written by:
More than a quarter of home-buyers in England and Wales are now paying stamp duty at the higher rates of 3% or more, research has revealed.

While home-buyers in London and the South East are hardest hit, hundreds of thousands of people across the country are being hit with stamp duty bills of over £7,500, which acts as a barrier both for first-time buyers and families wanting to buy a new home, said The TaxPayers’ Alliance (TPA) study.

The group has launched a “Stamp Out Stamp Duty” campaign calling for a cut in the ‘punitive’ tax.

Sales of residential properties are free of stamp duty up to the value of £125,000 and attract a 1% tax between £125,000 and £250,000.

In 2012-13, over £4bn was paid by home-buyers in residential stamp duty, of which £3.6bn was paid at a rate of 3% or more, according to the study.

In England and Wales some 723,829 homes were bought in 2012-13, with more than a quarter (182,692) being liable for stamp duty at a rate of 3% or more.

The TPA said stamp duty prevents people from moving when they need to for a new job or to be closer to relatives.

Matthew Sinclair, chief executive of the TaxPayers’ Alliance, said: “Owning your own home is an important milestone, but for many families it seems harder and harder to reach.

“Ministers have done nothing to ease the burden imposed by stamp duty, which is an unfair double tax that gets in the way of would-be first-time buyers and others thinking about moving. Instead they have made things worse with new thresholds and new, higher rates. The Government needs to act on ministers’ rhetoric about getting people onto the property ladder and cut this unfair tax.”


There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Six bank statement mistakes that can ruin a mortgage application

Being overdrawn and having a history of payday loans can be red flags to lenders when they...
Six bank statement mistakes that can ruin a mortgage application

Revealed: England’s most affordable rental locations

Which Cumbrian borough is the cheapest place to rent a home compared to average earnings?
Revealed: England's most affordable rental locations

NatWest increases standard variable rate to 3.74%

The lender has raised its default mortgage rate in line with the recent Bank of England ba...
NatWest increases standard variable rate to 3.74%

Guide to borrowing past retirement age

As an older borrower, you may be concerned that a lender will not offer you a mortgage pas...

Mortgage market biased against homeowners

Buy-to-let property investors are unfairly favoured in the mortgage market, an independent...

Should buy-to-let investors ‘go Dutch’?

The Netherlands is revealed as Europe’s top buy-to-let property hotspot

Private sector tenants in poverty double in decade

The number of private rented sector tenants in poverty has doubled in the last decade from...

Large mortgage broker firm launches with fees of over 1%

An insurance firm has launched a mortgage advice service

Second steppers targeting detached properties

Those living in their first home are increasingly looking to reduce the steps to their lon...

Mortgage Calculators