FTBs simply cannot get onto the property ladder say National Homebuyers
Homeowners may have no option but to make a fast property sale unless the government does something about stamp duty.
[UKPRwire, Wed Mar 19 2008] Although it appears unlikely that the chancellor will announce any changes to the tax in tomorrow's (March 12th) Budget, Moneyfacts is calling on him to do something.
The firm has pointed out that many potential first-time buyers (FTBs) are simply unable to make it onto the property ladder because of negative developments in the UK mortgage market.
With this in mind, many homeowners may seek a fast property sale before housing demand slumps and prices quickly follow.
"Now that the majority of mortgage lenders have tightened their lending strategy post credit crunch… there is even more of a requirement for FTBs to save at least a five per cent deposit towards the cost of their home," said Andrew Hagger from Moneyfacts.
"In light of these recent developments, Moneyfacts is calling on the government to increase the threshold to £200,000 or as an absolute minimum that borrowers should only pay duty on the margin above £125,000.
"Without positive action from the government in the Budget on Wednesday, there is real danger that getting on to the property ladder will be nothing more than a dream for the vast majority of would be homeowners," he added.
Fast house sale expert Julian King says, "As it gets increasingly difficult for FTBs to enter the market, we will continue to see buyers commanding prices on the housing market.
"Homeowners who cannot afford to see the value of their property fall are encouraged to find a quick sale of their property, to limit losses.
"FTBs traditionally accounted for 45-50 per cent of all property transactions, this is now severely limited".
Mr King is a director of National Homebuyers, the UK's leading quick property sale firm, guaranteeing to make an offer to purchase any property in the UK, regardless of its condition or location. The company is also the UK leader in Sell and Rent Back solutions.