National Homebuyers: 'Stamp duty preventing buyers entering the market'
First-time buyers (FTBs) are struggling to keep up with the rising cost of stamp duty, making it difficult to secure a fast property sale.
[UKPRwire, Mon Mar 03 2008] Halifax has published new figures, revealing that the average buyer spends around seven per cent of their income on the tax.
This has increased significantly since 2002, when the figure was just five per cent.
With FTBs finding it so difficult to make it onto the property ladder it is likely that house prices will continue to fall, meaning many people will seek to make a fast property sale in order to get the most money possible for their houses.
Martin Ellis, chief economist at Halifax, wants the government to raise the stamp duty threshold.
"A growing number of home buyers are paying the equivalent of more than 20 per cent of local average annual earnings in residential stamp duty. This trend is most prevalent in the south of England. But, other parts of the country are being affected as well," he commented.
"The higher stamp duty thresholds have not been altered since their introduction a decade ago. We call on the government to raise all stamp duty thresholds to account for the rise in house prices over the past decade and to index for house price inflation in the future," continued Mr Ellis.
Quick house sale expert Julian King adds, "Traditionally FTBs accounted for 45-50 per cent of all property transactions, this is now severely limited.
"With fewer available buyers, the prices of properties across the UK continues to fall, as the length of time to sell a property on the open market lengthens.
"Homeowners looking for a quick sale to solve financial difficulties or achieve the purchase of their next property are encouraged to seek a home sale away from the traditional open market [estate agency] route".
Mr King is a director of National Homebuyers, the UK's leading quick house sale company that guarantees to make a formal offer to purchase any property for vendors who want a quick sale. The company also specialises in mortgage rescue solutions like the equity release styled 'Sell and Rent Back'.