The study showed the average price a FTB paid in London passed the £250,000 mark for the first time in 2006, taking it above the 3 per cent threshold. FTBs now pay an average of £250,819, compared to the national average of £151,565.
The higher Stamp Duty thresholds of £250,000 and £500,000 were introduced in July 1997. If thresholds had increased to reflect the rise in house prices since then, they would stand at £680,000 and £1,350,000 respectively, Halifax reported.
Martin Ellis, chief economist for Halifax, said: “The government’s failure to index link Stamp Duty thresholds to house price inflation is adding to the already considerable difficulties faced by people trying to get into the market. We call on the government to increase the higher thresholds and to index link all the Stamp Duty thresholds to house price inflation in future.”
Jeff Knight, director of marketing for GMAC-RFC, said: “Our research shows there is an equal split between those who can’t afford to get into the market and those who choose not to. While raising the threshold would help, it wouldn’t solve everything.”
