Specialist lender Aldermore wants the government not to end the stamp duty exemption threshold for first time buyers, currently set at £425,000.
It’s scheduled to end in April 2025 but Aldermore’s survey of 2,000 prospective FTBs has revealed that over half (53%) want the government to raise the stamp duty exemption threshold above £425,000.
Over one in eight (13%) recent FTBs say the cost of stamp duty was the hardest part of the home buying process and nearly three in four (73%) feel the government needs to introduce new incentives and legislation to help them onto the property ladder
Jon Cooper, director of mortgages at Aldermore, says:“We’ve seen homeownership become more difficult to attain, yet it remains a big life goal for over three in four (77%) prospective buyers. There’s been much speculation that the stamp duty exemption threshold will fall back to £300,000 from £425,000 in the Autumn Budget.
“We’re calling for the Government to keep the current stamp duty exemption threshold, with concerns more individuals will be priced out of home ownership if it falls back.
“The average cost of a house in the UK is £371,958 and in London this rises even further, so if the exemption falls back to £300,000, a reduction in stamp duty exemption will add further pressures to what is already a costly homeownership journey.
“We can expect to see this sentiment significantly increase if the threshold is reduced. FTBs are desperate for more support to help them get on the property ladder, and while there is no silver bullet, keeping the threshold at the current £425,000 will make a considerable difference to many.”