Stamp Duty doubles for First-time Property Buyers

As per the data revealed by Britain’s leading mortgage lenders, Halifax, the stamp Duty for First-time Property Buyers has increased by as much as two folds.
In the year 2007, people paid an average £1,751 as compared to £960 in 2002, according to Halifax.

As per the rules of British Mortgage and Property sector, Stamp duty is paid at one per cent upon homes worth between £125,000 and £250,000, then rises to three per cent on those between £250,000 and £500,000, and to four per cent for properties worth more than £500,000.

So the costlier property you buy, the more stamp duty you’ll have to pay. No doubt why a person buying a house in London paid upto 3 to 4 percent stamp duty, while some buying a property in other parts of UK, namely Scotland, North Yorkshire, Humberside and Wales paid zero or absolutely no tax at all because most homes in those regions cost less than £125,000.

This is one typical example of how much and how soon can cost of living appreciate in any area. Without you being aware of anything, the prices or the money that you’ll have to shell out from your pocket, may soon double or triple.

Now that the house prices are expected to fall, no one knows what their house is worth. Economic Activist are up in arms demanding relaxation in stamp duty by raising the stamp duty charges brackets in UK.

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