Rising house prices are pushing the cost of stamp duty up and knowledgeable buyers are attempting to fall into a lower bracket by restricting how much they offer on a home, a new report finds.
According to independent.co.uk, the report conducted by TSB reveals that the average buyer now spends over £5,000 on stamp duty costs alone. However, not everyone is so clued-up on the price of stamp duty, as 22 per cent of first-time buyers fail to factor in this cost before they place an offer on a house.
Moreover, some 14 per cent of current homeowners are just as bad, forgetting that they’ll also have to pay stamp duty when they buy their second or third house.
It’s not all bad news though, as 41 per cent of first-time buyers have done their research and know exactly how much stamp duty they will have to pay. Unsurprisingly, current homeowners are slightly more informed, as 45 per cent say they have sufficiently planned for stamp duty costs, reports propertywire.com.
Ian Ramsden, TSB’s director of mortgages, states it’s worrying that so many buyers are unprepared for the extra cost.
“With the expenditure on stamp duty equivalent to a tenth of the average deposit, it is important for potential home buyers to factor it in to their purchase decision at an early stage,” he explains. “Before starting their house hunt, people should talk to a qualified mortgage adviser to see what options are available to them.”