For the past three years we’ve been campaigning long and hard, with some success, for the Stamp Duty threshold to change. It now stands at £125,000, double the £60,000 it was previously.
Today, Halifax publishes the first postcode-level analysis of Stamp Duty rates paid across England and Wales. It reveals that one in five home buyers are now over the higher Stamp Duty threshold.
In light of this and ahead of the Budget on March 21, we now demand that the government increases Stamp Duty thresholds in line with the increase in house prices seen since the mid-1990s and commit itself to index linking all Stamp Duty thresholds to house price inflation in the future.
Halifax has examined house prices and home sales in 2,132 postcode districts across England and Wales over the past five years. The results of its research make shocking reading.
Nearly a quarter of postcode districts in England and Wales now have an average house price above the 3% Stamp Duty threshold of £250,000, compared with only one in 20 districts five years ago.
Over the past five years, there has been a 281% rise in the number of home sales in England and Wales above the £250,000 threshold. The number of residential property sales attracting at least 3% Stamp Duty has increased from 73,403 in 2001 to 279,408 in 2006.
Home buyers involved in these transactions were faced with Stamp Duty bills of at least £7,500. In 2006, 19% of home buyers paid at least 3% Stamp Duty compared with 6% in 2001.
To read the full results of the Halifax research simply log on to www.mortgagestrategy.co.uk and while you’re there, join our campaign by clicking on the Step Up Stamp Duty link and signing our petition. The chancellor needs to listen and this is your chance to tell him to get it SUSD.