In a recent survey of visitors to its site, SmartNewHomes.com has found that demand for affordable properties has reached a peak. Just over 5,000 of the new homes currently promoted on the site fall under the £125,000 stamp duty bracket, yet over 40,000 people have been searching for a home that falls below this threshold, indicating an urgent need for more affordable homes and adding further fuel to its recent campaign to get stamp duty abolished for first-time buyers.
David Bexon, managing director, SmartNewHomes.com, said: “These recent findings highlight the severe lack of affordable new homes currently on the market, with first-time buyers increasingly getting priced out. The average price for a new home is currently £260,073, with average prices in London and the South East exceeding £300,000.
“A first-time buyer purchasing an averagely priced home in the South East would currently have to pay out £9,000 in stamp duty, in addition to paying legal fees and saving up a deposit – pushing the reality of owning a home for many, out of reach.”
Ten years ago when Blair came into power, the lower stamp duty threshold was £60,000. In the same year, the average price paid by a first-time buyer for their first home was recorded as £54,133 by Communities and Local Government (CLG), with the majority of these buyers able to escape the stamp duty trap.
However, by 2006, while the lower stamp duty threshold had been moved up to £125,000, the average price paid for a property by a first-time buyer had nearly trebled to £151,803, according to CLG statistics, resulting in more first-time buyers having to pay stamp duty and making the reality of buying a home increasingly difficult for those buyers looking to step onto the property ladder.
Bexon concluded: “We are calling for Government to scrap stamp duty for first-time buyers, assisting them in their quest to become homeowners - helping them out of rented accommodation and onto the housing ladder. I would urge visitors to our website to sign up to our petition and to offer their support to this important group of aspiring homeowners.”
