| The Royal Institute of Chartered Surveyors are | | | | recently fall into the £126k+ price range, many |
| pushing for a change in the current regime governing | | | | first-time buyers are up in arms at this extra cost. |
| house buying, deeming it 'unfair' and 'inefficient'. If they | | | | The new scheme proposed by the RICS calls for the |
| are successful, it could mean that first-time buyers and | | | | thresholds to be raised, and homes valued up to |
| less affluent pensioners will be exempt from paying | | | | £150k paying no stamp duty, and the Council of |
| stamp duty, and those buying houses priced at under | | | | Mortgage Lenders are urging this to be raised even |
| £1m will pay significantly less tax. | | | | further, to £250k, after which a 2.5% duty will |
| Stamp duty - currently between 1% and 4% of the | | | | apply. It may not sound like much of a decrease, but |
| house price, depending on value, is an unpopular tax | | | | on a home costing £250k that 0.5% will save |
| due to soaring house prices in recent years. The | | | | you £1250. |
| average price paid on stamp duty has risen 60% in | | | | For the moment, the mortgage market is stagnant. |
| just the last 5 years. The threshold at the moment is | | | | Because of the high house prices and legal costs, few |
| £125,000, meaning that if your house is worth | | | | can afford to buy, and because of the threat of |
| less than this, you won't pay duty. On property worth | | | | negative equity few can afford to sell or drop their |
| £126k - £250k, duty is 1%. You must pay | | | | asking prices. Currently, a first-time buyer can expect |
| 3% if the house is worth between £250k and | | | | to need an average of £60k as a deposit on a |
| £500k, and on property over £500k, the | | | | new house, plus £1750 in stamp duty alone. |
| duty is 4%. Because the majority of houses sold | | | | |