Ahead of the Autumn Budget, Aldermore has called for the Government not to end the Stamp Duty exemption threshold for first time buyers (FTBs), currently set at £425,000.
Aldermore’s First Time Buyer Index, a survey of 2,000 prospective FTBs, revealed that over half (53%) of prospective FTBs want the Government to raise the Stamp Duty exemption threshold above £425,000.
In addition, over one in 10 (13%) recent FTBs said the cost of Stamp Duty was the hardest part of the homebuying process.
What’s more, the index also revealed that nearly three in four (73%) FTBs said that the Government needs to introduce new incentives and legislation to help them onto the property ladder.
Jon Cooper, director of mortgages at Aldermore, said: “We’ve seen homeownership become more difficult to attain, yet it remains a big life goal for over three in four (77%) prospective buyers.
“There’s been much speculation that the stamp duty exemption threshold will fall back to £300,000 from £425,000 in the Autumn Budget next week.
“We’re calling for the Government to keep the current stamp duty exemption threshold, with concerns more individuals will be priced out of home ownership if it falls back.”
Cooper added: “The average cost of a house in the UK is £371,958 and in London this rises even further, so if the exemption falls back to £300,000, a reduction in stamp duty exemption will add further pressures to what is already a costly homeownership journey.
“Over one in 10 (13%) recent FTBs said the cost of stamp duty was the hardest part of the homebuying process, and we can expect to see this sentiment significantly increase if the threshold is reduced.
“FTBs are desperate for more support to help them get on the property ladder, and while there is no silver bullet, keeping the threshold at the current £425,000 will make a considerable difference to many.”
