Regional differences make it hard on London FTBs

25 October 2006
The vast differences in the price of property in different areas of the UK make the paying of stamp duty unfairly levelled against residents of the capital city.

According to the findings of the Council of Mortgage Lenders (CML), London residents are far more likely to have to pay tax on their first home purchase than home buyers in any other areas.

More than four of every five (82 per cent) first-time buyers (FTBs) in the north of England do not pay stamp duty on their first property purchase, while just three per cent of all first-time purchases in London escape the tax.

"It is shocking to see the huge regional differences in first-time buyers' liability for stamp duty," said CML director general Michael Coogan. "This raises important questions for policy makers in government.

"While there is a stated desire to help more people across the UK into the housing market, through schemes such as shared equity, the high entry costs of buying a home will undoubtedly make many potential first-time buyers in the south think twice."

To read more about first-time buyer mortgages, click here.


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