Franky on Finance

Homebuyers have forked out £31.5bn in stamp duty over the past ten years.  Last year alone, the figure reached £6.5bn - a staggering 675% increase since Labour came to power.  In 1997-1998, just £830m in stamp duty was paid.  Increases introduced by Gordon Brown when he was Chancellor, which were widely criticised at the time, are forcing record numbers of homebuyers to pay stamp duty.  Before Labour came to power, the tax was charged at just one per cent on all properties sold for £60,000 or more.  Today, it is charged at 1% on houses costing between £125,000 and £250,000, 3% on those worth from £250,000 to £500,000 and 4% for those sold for more than £500,000.  In London, the average asking price for a home is £402,000, which would mean stamp duty of more than £12,000.  The majority of first-time buyers are now forced to pay the tax, which - coupled with the recent property boom - makes finding enough money to buy a home even harder.