Stamp duty viewed as barrier by first-time buyers

Two thirds of aspiring homeowners would be more likely to purchase a home if they didn’t have to pay stamp duty, according to research by Yorkshire Building Society.

Stamp duty land tax remains a key upfront cost to first-time buyers, with 72% having difficulty getting the money, compared to raising a deposit (69%) and monthly mortgage payments (34%).

Further findings:

  • 52% of aspiring homeowners say that they’re saving less than £250 a month
  • 18% are not saving enough towards buying a first home.

Andrew McPhillips, chief economist at Yorkshire Building Society, said:

“Saving enough to pay stamp duty adds to the overall difficulty of buying a home. It is hard enough for buyers to find the right property in the right location without the need to pay additional fees and taxes, given the scale of house price inflation in recent years.

“Reducing any of the costs such as stamp duty for first time buyers and those moving up the ladder would help to make homes more affordable for many, enabling more people to realise their homeownership aspirations.”

Contact us to discuss saving to buy a property.