First-time buyers rushing to avoid Stamp Duty create eight-month high in sales

The number of first-time buyers purchasing a property has reached an eight-month high as an increasing number of people rush to avoid the Stamp Duty being re-imposed on March 24.

According to data from the National Association of Estate Agents (NAEA), nearly a quarter of all house sales in January were to first-time buyers.

The figures from the first month of this year were up from 21 per cent in December and marked the third monthly rise in a row.

The NAEA described the Stamp Duty holiday as a “key factor” for those trying to get on the property ladder and has subsequently urged the government to rethink bringing it back in so soon.

Once the Stamp Duty is in operation again, it will raise the tax paying threshold for first-time buyers from £125,000 to £250,000. First-time buyers will pay tax to the value of one per cent relative to the price of a property up to £250,000.

NAEA president Wendy Evans-Scott said: “First-time buyers seem to be making the most of the stamp duty holiday before it comes to an end in March. The NAEA and other property specialists campaigned hard for the government to introduce the tax exemption to support first-time buyers, and these latest figures certainly suggest that stamp duty is a key factor for those on tight budgets purchasing their first home.

“We are deeply disappointed that ministers have axed this support for a crucial part of the housing market which has benefited so many house-hunters in getting on to the property ladder,” she added.

Statistics released by HM Revenue and Customs recently showed that about 64,000 homes were sold in the UK in January 2012.

The figures marked the highest sales for the first month of the year since 2008 when 79,000 homes were sold.