Building Societies call for stamp duty reforms

Building societies have handed the Chancellor a 20,000-signature petition calling for changes to the thresholds at which stamp duties are charged.

Many homebuyers and housing sector experts claim that stamp duty adds an extra burden to first-time buyers already struggling to raise the cost of a property. Stamp duty is currently one per cent on houses priced between £60,000 and £250,000.

Analysts have expressed concern about the possibility that the tax will deter first-time buyers from entering the market. The ratio of first-time buyers is currently at a 20-year low, affected by soaring house prices.

Andrew Messenger, the chief executive of West Bromwich Building Society, told Channel Four's 'News at Noon': "'What we really need here is to help first time buyers to fulfil their dreams to own their own houses and not to have to struggle like they are doing at the moment at a time when their finances are really stretched and they are trying to find their way in life.

"'If first time buyers aren't in there in numbers and they are down at the moment at 12 per cent and the long term average has been 46 per cent if they don't come on to the market then second time buyers can't sell and the housing market could be in danger of falling quite dramatically."

Mr Messenger insisted that the petition was not an attempt by building societies to increase their own business, but claimed a reform of stamp duty was needed to encourage people to own their own homes. Building societies are proposing that the threshold for stamp duty be raised to £150,000.