CML: Over half of FTBs pay stamp duty

11 October 2006
More than 50 per cent of all first time buyers (FTBs) are now paying stamp duty, according to research from the Council of Mortgage Lenders (CML).

In the last 12 months alone, the proportion of FTBs having to pay stamp duty has leapt up from 48 per cent to 56 per cent and this was having a knock-on effect - reducing the FTB share of the home purchase market to its lowest since the CML survey began last spring.

The same figures also found that only 15 per cent of home movers in August escaped the tax, compared with 21 per cent from the same month a year ago.

"Overall affordability has worsened a little, especially for first-time buyers," said CML director general Michael Coogan.

"Over the period of a year, small monthly changes can nevertheless be significant - as the rise in the proportion of mortgage borrowers required to pay stamp duty shows."

To read more about a first time buyer mortgage, click here.

track© Adfero Ltd