...huge cost of moving means we’re stuck in our first property
JAMES DOVE and his partner Aimee would love one day to move into a larger home together and start a family.
But although they are saving towards their ‘forever home’ and would love to move within the next five years, they feel ‘handcuffed by stamp duty’.
James, who runs film and theatre review website CloseUp Culture, says: ‘We feel held back from taking the next step on the property ladder.
‘It’s unfair that younger people should be stuck in their first home and put off buying a family house as earlier generations enjoyed, simply because soaring house prices are trapping us into paying more of this tax.
‘Older couples wanting to downsize are also being dissuaded from moving because of this stamp duty so there are fewer family homes available on the market.’
‘We hope to have a family of our own one day, but that would require a bigger property that will require more savings — and another sum towards stamp duty.
Digital editor James and Aimee, who are in their 20s, paid £285,000 for a three-bedroom semi-detached home in October last year. As they bought a starter home the couple did not have to pay stamp duty.
Already fighting against record-high house prices, the couple had to move from Watford almost 100 miles east to Ipswich so they could get on the first rung of the property ladder.
They lived with family for several years before that so they could save up for a deposit. Had they stayed in Watford, their money would have stretched to a one or two-bedroom flat.
‘ We made the sacrifice of moving many miles away from family and friends. We love our new home and want to put down roots. But we need an incentive so we can save up for that dream home.’
The threshold for first-time buyers to pay stamp duty is much higher than for those already on the property ladder — they pay nothing on properties costing up to £425,000 before the 5 pc tax is imposed.
At this point couples such as James and Aimee only pay the tax on the price above £425,000 up to £625,000. Yet if they later want to buy another property, such as a family home, the stamp duty 5 pc threshold kicks in at a much lower £250,000.
The next £675,000 on top of that is charged at 5 pc, and the next £575,000 is charged at 10 pc. Any remaining amount — the portion above £1.5 million — is charged at a massive 12 pc.
Those on the first or second rung of the property ladder are having to save to make the leap farther up the ladder.
James says: ‘While relief for first-time buyers is welcome, I see no reason why this cannot still be offered later on to stop a bottleneck in supply for the property market.
‘ Our generation has not benefited from the boom in house prices enjoyed by earlier generations — we will only pick up the stamp duty bill.’