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ABOLISH STAMP DUTY FOR FIRST TIME BUYERS
New figures reaffirming the soaring cost of buying a first time home show the need for a cut in housing tax, says Parliamentary Candidate Mark Versallion.
In reply to Parliamentary Questions yesterday, Government Ministers admitted that the cost of a first home has almost tripled over the last ten years. Yet stamp duty thresholds have not kept pace, meaning that Gordon Brown’s tax take has soared, and more and more first time buyers are liable for this housing tax.
- No tax before Gordon Brown: In 1997, first time buyers in England spent an average of £58,400 to take their first steps on the property ladder. Yet the stamp duty threshold was £60,000 meaning the average first time buyer paid nothing.
- Now £1,700 tax: In 2007, buyers need to spend an average £173,000 to buy their first home in England. Yet the stamp duty threshold has only increased to £125,000, meaning the average first time buyer now pays £1,731 in tax. All home owners have suffered, particularly as the 3 and 4 per cent thresholds have never been increased.
- More expensive mortgages: Figures have also revealed that 1 in 10 first time buyers are now taking out 100 per cent mortgages, making them vulnerable to negative equity and paying higher interest rates. By rolling the stamp duty cost into a mortgage, first time buyers also end up paying interest on this tax.
Shadow Secretary of State for Communities & Local Government, Eric Pickles MP, said: "One of the most damning indictments of Gordon Brown’s record is that the number of first time buyers has plummeted to its lowest level for decades. His stealth tax stamp duty is pushing more buyers into bigger mortgages."
Stretford and Urmston parliamentary spokesman, Mark Versallion, said "Affordable homes are the bedrock of stable and safe communities. We need to make it easier to get on the housing ladder.”
Mr Versallion added "If the Government really wants to help people onto the housing ladder, they would adopt the Conservatives' proposals to abolish stamp duty for first time buyers up to £250,000."