Building firm warning over stamp duty

A house building firm has warned that the levying of stamp duty at its present threshold of £125,000 means the majority of first-time buyers face a threat to their ability to meet costs when they buy a new home.

Referring to a recent Conservative Party study, which found that the tax was paid by 65 per cent of first-time buyers at an average cost of £1,731, Persimmon Homes warned: "The percentage of property purchasers paying stamp duty is at its highest level yet and could continue to rise, which would result in peoples' financial outlay spiralling out of control."

The cost of stamp duty may be another reason for some wishing to get on the housing ladder to consider the self build option.

Next month sees chancellor of the exchequer Alistair Darling deliver his first budget, which will offer a chance for him to make changes to the stamp duty thresholds.

Last week London Councils, a body representing the 32 local authorities in the metropolis, called for the lower stamp duty threshold to be doubled to £250,000.


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