Mar 23 2006
First-time homebuyers are to get a small boost from the government as the starting threshold for stamp duty will rise to £125,000, announced in the budget.
Previously charged at one per cent on property worth between £120,000 and £250,000, the duty will now start on homes worth £125,000, an increase of just over four per cent.
The higher bands for stamp duty remain unchanged at £250,001 to £500,000 (three per cent duty) and over £500,000 (four per cent duty).
The average detached house costs more than £250,000 across the UK, according to recent research from the Halifax.
Mortgage lenders, estate agents and industry bodies have been asking the government to reform stamp duty as rising house prices are forcing many first-time buyers out of the market.
Critics say they are disappointed with the small increase announced in the budget and they still want the government to reform the system.
The new threshold will come into force on property sales completed on or after 23rd March.
