Stamp duty is hampering first-time buyers' (FTBs) attempts to get onto the property ladder.
July 17, 2007 (Press Release) --
That is according to Bradford & Bingley which says that 68 per cent of FTBs have paid or will pay the tax.
It comes at a time when interest rates are at a six-year high and affordability is particularly low, meaning that there are few new buyers entering the property market.
This is bad news for homeowners who are looking to sell their property and Bradford & Bingley has joined rising calls for the government to scrap stamp duty.
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"Stamp duty was never designed to be a tax on first-time buyers, yet it now affects a vast proportion of them and is seriously hampering their ability to get a foothold on the property ladder," said Andy Wiggans, director of mortgages at the firm.
"The average first-time buyer now has to find over £1,000 to pay this tax, at a time when most are struggling to even fund a deposit."
The company says that many FTBs are turning to their parents for help but this is leading to further financial problems.
With interest rates currently rising, parents are finding it difficult to justify a remortgage or taking out a loan on their child's behalf.
Home sellers have been experiencing the negative effects of the lack of buyers for some time says the UK's leading property purchase firm.
"It's taking longer to sell a property through the traditional 'open market' route," says National Homebuyers director Julian King.
"With the average time on the market in the three-month region, this does not suit many home sellers' situation.
"We have received a 250 per cent increase in the number of enquiries to National Homebuyers year-on-year. This shows that homeowners looking to sell are showing signs that selling through an estate agent does not suit their needs," says King.
The additional cost to FTBs will limit the number of potential purchasers says National Homebuyers, leading to the fall of property prices across the UK, because vendors cannot achieve the expected price for their home.
National Homebuyers is the UK's leading fast purchase property firm, guaranteeing a quick property sale for any UK property, regardless of the vendors' reason for sale or the property's condition or location
It comes at a time when interest rates are at a six-year high and affordability is particularly low, meaning that there are few new buyers entering the property market.
This is bad news for homeowners who are looking to sell their property and Bradford & Bingley has joined rising calls for the government to scrap stamp duty.
Facing financial difficulty? Need a discrete solution to your problems?
"Stamp duty was never designed to be a tax on first-time buyers, yet it now affects a vast proportion of them and is seriously hampering their ability to get a foothold on the property ladder," said Andy Wiggans, director of mortgages at the firm.
"The average first-time buyer now has to find over £1,000 to pay this tax, at a time when most are struggling to even fund a deposit."
The company says that many FTBs are turning to their parents for help but this is leading to further financial problems.
With interest rates currently rising, parents are finding it difficult to justify a remortgage or taking out a loan on their child's behalf.
Home sellers have been experiencing the negative effects of the lack of buyers for some time says the UK's leading property purchase firm.
"It's taking longer to sell a property through the traditional 'open market' route," says National Homebuyers director Julian King.
"With the average time on the market in the three-month region, this does not suit many home sellers' situation.
"We have received a 250 per cent increase in the number of enquiries to National Homebuyers year-on-year. This shows that homeowners looking to sell are showing signs that selling through an estate agent does not suit their needs," says King.
The additional cost to FTBs will limit the number of potential purchasers says National Homebuyers, leading to the fall of property prices across the UK, because vendors cannot achieve the expected price for their home.
National Homebuyers is the UK's leading fast purchase property firm, guaranteeing a quick property sale for any UK property, regardless of the vendors' reason for sale or the property's condition or location
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