With house prices rising and taxation thresholds remaining static, is it any wonder the Government are reaping the rewards? Why on earth would they want the housing market to slow down?
The lowest band of Stamp Duty is set with a threshold of £60,000. It has been set at this level since 1993 and at the time was meant for the most expensive houses. How many people can purchase property at a lower rate than that now? Not many, we think.
Our View
Now, 75% of first time buyers pay Stamp Duty. This is not what the Government introduced it for but is now reaping the rewards.
In comparison, Nationwide calculated that if the Stamp Duty levels had been index linked, the limit would now be £150,000 and 80% of first time buyers would be exempt. Hmmmmm.