Stamp duty 'a barrier for FTBs'

Rising interest rates and house prices means that affordability is becoming increasingly stretched for potential first-time buyers (FTBs), according to a new report that suggests stamp duty is creating further pressure.

Research by Bradford & Bingley reveals that 68 per cent of FTBs have already paid stamp duty or will be liable to do so for their property purchase.

Andy Wiggans, director of mortgages for the firm, said that the average FTB is now expected to pay £1,000 in stamp duty, when most are "struggling" to save for a deposit.

"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," he remarked.

Earlier in the month, the Council of Mortgage Lenders stated that it had been urging the government to introduce a graduated stamp duty system, under which the tax would be applied to the proportion of the property value above the thresholds.

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