Nationwide has called on Gordon Brown to increase the Stamp Duty threshold, at which the initial 1% tier of Stamp Duty tax paid on residential house purchases kicks in, in line with house price inflation.
This would take the threshold up to £202,000 from its current level of £125,000, based on the original threshold of £60,000 increasing in line with house prices since 1993.
With figures from the Council of Mortgage Lenders showing that 56% of first-time buyers now pay stamp duty, compared to just 48% a year ago, this move would free up thousands of homebuyers each year from the burden of the tax.
Stuart Bernau told the Chancellor: “As property prices continue to rise, an increasing number of people are buying houses and being caught by stamp duty.
“Whilst we welcome the Government’s move to raise the stamp duty threshold in the last Budget, Nationwide believes that stamp duty limits should be linked to house price inflation to ensure the burden of stamp duty keeps pace with rising house prices.
“If this were the case, the 1% rate should now start at £202,000.”
Mortgage Strategy is also campaigning to raise the stamp duty threshold for its Step Up Stamp Duty Campaign.
Nationwide also asked Gordon Brown to increase the limit on annual ISA savings from the current level of £7,000 to £9,000 – the same amount that could be saved in its predecessor, the TESSA, which was replaced by the ISA in 199