AROUND THREE-QUARTERS OF FIRST-TIME BUYERS PAY STAMP DUTY

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​​Last year, 74% of first-time buyers* paid Stamp Duty Land Tax when they bought their property. Stamp duty is payable on properties worth more than £125,000 (£145,000 in Scotland, where Land and Buildings Transaction Tax applies). The figures show that just a quarter of first-time buyers bought properties worth less than the stamp duty threshold of £125,000, down from 47% in 2006.

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With the average property costing over £200,000, according to figures from the Land Registry, more and more first-time buyers are finding themselves paying this tax. Calculating the tax Where a property is worth in excess of the nil-rate band, the amount up to £250,000 is charged at 2%, and between £250,000 and £925,000, 5%. This means that first-time buyers purchasing a property for £275,000 would pay £3,750 in stamp duty in England and Wales, and £3,350 in Scotland. Some commentators have called for the tax to be levied against the seller, not the buyer, to help reduce costs for those entering the housing market.

*Yorkshire Building Society 2017
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