Prices for Homes rising over £250,000

12/02/2007

People in London are paying £250,000 for an average house in London. First-time buyers are sectioned in the 3 per cent stamp duty fee. This is causing difficulties financially for young people trying to get on to the property ladder.

In 1997 there was not a single home in London, which had an average value of £250,000, this has caused the tax to rise from 1 per cent to 3 per cent.

"We call on the government to increase the higher thresholds in line with the increase in house prices and to commit to index link all the stamp duty thresholds to house price inflation." Commented Mr Ellis.

An investigation took place and figures estimated that 2 out of 3 newly built houses in London were being brought by speculators and investors. Simply it is making it difficult for first-time buyers.

Peter Gladdy commented, “Signs of confidence displayed by first time buyers in December dropped dramatically following the Bank of England's decision to raise the base rate to 5.25 per cent in January."

Figures from Mortgages Direct estimated that in January, mortgages taken out by first-time buyers fell by 10 per cent.

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