According to recent research, British first time buyers have to stump up an average of nearly £1,500 for stamp duty. This tax is one of the major barriers that face first time buyers according to think tank Policy Exchange.

Stamp duty is not charged on homes up to £125,000. For homes sold for between £125,000 and £250,000, 1% stamp duty is charged. For homes between £250,000 – £500,000, 3% is charged, and houses sold any higher have a 4% tax charged. Rising house prices throughout Britain means that many more properties are reaching the stamp duty thresholds.

Later this week, new Prime Minister Gordon Brown is expected to outline plans to help young first time buyers get onto the housing ladder however the report points out that Brown actually oversaw ever-higher stamp duty during his time as chancellor. Instead, Policy Exchange are calling for an abolishtion of stamp duty, or a rethink that would see stamp duty rates slashed.

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