More than one in five (22 per cent) first-time buyers have paid stamp duty so far this year, research from Coventry Building Society has revealed.
First-time buyers currently pay stamp duty if their home costs more than £425,000, which is set to drop to £300,000 in March.
The building society also pointed out that, in the autumn Budget, there was no mention to permanently increase the stamp duty thresholds.
Coventry Building Society head of intermediary relationships, Jonathan Stinton, said: “With no action from the chancellor to make stamp duty thresholds permanent, first time buyers are left in an increasingly tough spot.
“Buyers in London will have to find an extra £6,000 for the tax on their home come April, which isn’t exactly spare change they have lying around – this is a jolting hike.”
Stinton argued that, as a result, first-time buyers need help and support to get on the ladder, but pointed out that, if almost a quarter of them are paying stamp duty, even the extended thresholds are not doing enough.
“At the very least we would have liked to have seen the thresholds made permanent in yesterday’s announcement, even if it was just for first time buyers, as they can be the catalyst for additional property activity,” he added.
“First-time buyers who can’t move before next March will need to ready themselves for the hike.
“It could be a lot to try and save, so many new buyers may turn to family to make up the difference – putting even more pressure on the Bank of Mum and Dad.”
Coventry’s research also found that, throughout the first three quarters of 2022, before the extended nil-rate thresholds were in place, 27 per cent first buyers were paying stamp duty.
tom.dunstan@ft.com
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