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70% of properties avoid stamp duty

70% of properties avoid stamp duty

Category: Mortgages

Updated: 25/03/2010
First Published: 25/03/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The stamp duty holiday for first time buyers purchasing properties under £250,000 has been welcomed, after it was revealed seven in ten homes for sale fall under the threshold.

Only a quarter of properties for sale fell within the previous stamp duty threshold for all buyers of £125,000, the research from Rightmove also revealed.

Just 2% of homes currently on the market were valued at more than £1 million and would therefore be affected by the increased stamp duty of 5%.

"This welcome initiative removes the majority of properties for sale from the clutches of a somewhat restrictive tax for the UK property market, giving a welcome boost to the important spring market," said Miles Shipside, the property website's commercial director.

"A massive 70% of properties for sale are now tax-free for first time buyers.

"However, sellers may feel they have to negotiate less with a buyer who is now a couple of thousand pounds better off, which could blunt the benefits of this stamp duty holiday."

A recent report by the website found that of those people who expected to buy a property in the next 12 months, just 25.8% were first time buyers.

The figure was 5% down on that reported previously and fell considerably short of the 40% threshold considered indicative of a healthy housing market.

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