Homes rising over £250,000
People in London are paying £250,000
for an average house in London. First-time buyers are sectioned
in the 3 per cent stamp duty fee. This is causing difficulties
financially for young people trying to get on to the property
In 1997 there was not a single home
in London, which had an average value of £250,000, this
has caused the tax to rise from 1 per cent to 3 per cent.
"We call on the government to
increase the higher thresholds in line with the increase in house
prices and to commit to index link all the stamp duty thresholds
to house price inflation." Commented Mr Ellis.
An investigation took place and figures
estimated that 2 out of 3 newly built houses in London were being
brought by speculators and investors. Simply it is making it difficult
for first-time buyers.
Peter Gladdy commented, “Signs
of confidence displayed by first time buyers in December dropped
dramatically following the Bank of England's decision to raise
the base rate to 5.25 per cent in January."
Figures from Mortgages Direct
estimated that in January, mortgages taken out by first-time buyers
fell by 10 per cent.
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