The research shows four times as many first-time buyers are now affected by stamp duty compared to 30 years ago and only half of them realise stamp duty is an additional expense after beginning the home buying process.
One in four discovered that stamp duty could delay their attempts to get on the property ladder when they were shopping around for their mortgage; one in 20 realised stamp duty would have an impact on their budget only after they had spoken to their solicitor and one in 20 only discovered the cost of stamp duty after they had received their mortgage offer.
In the South West 15 per cent of first-time buyers are affected by stamp duty, in London the figure is 14 per cent and in the South East 13 per cent.
Stephen Leonard, director of mortgages at A&L, said: “Of those potential home owners who are looking to buy a property within the next 12 months, just under two thirds have not even thought about paying stamp duty, and almost a third don't even know what it is. This will inevitably lead to disappointment for some.
“With thorough research and planning, stamp duty needn't be an obstacle to moving into your dream home. First-time buyers especially need to do their sums and know the total cost of buying a house.”
John Stewart, director of PMI Independent Financial Advisers, commented: “The first-time buyer market is very quiet at the moment. As for advising on costs, we do this in the first meeting, even before sourcing products.
“Stamp duty is often the biggest expense for young purchasers and generally they have no idea what it is.”
