Home-buyers hit by double duty

HOMEBUYERS in Oldham are forking out more than double in stamp duty than 10 years ago, according to official figures.

In 1997 a family buying an average detached house in the area would have spent £1,027 on stamp duty but last year it rose to £2,497 — an increase of £1,470.

The hike is because previous years of soaring house prices have pushed more family homes into the 3 per cent stamp duty bracket.

Since 2000, the 3 per cent threshold has been set at £250,000. Homebuyers purchasing properties worth more than £500,000 have paid 4 per cent stamp duty.

The Tories, who analysed the Government figures say buyers are being hit because of Gordon Brown’s failure to increase the tax threshold in line with house prices — with house prices increasing and creeping up into higher stamp duty bands.

There are fears the higher rates are discouraging families from moving — at a time when the housing market is already grinding to a halt because of the credit crunch.

Shadow housing minister Grant Shapps said: “Instead of helping people on to the housing ladder the Government has hijacked the home-buying process by raising stamp duty.

“Buying your own home used to be an obtainable dream for many people in Lancashire now it is just the minority who manage to climb on to the property ladder.”

And the figures paint a similar picture in other parts of Greater Manchester.

Stamp duty for detached homes in Manchester rose by £1,170, Rochdale £1,240, Wigan £1,258 and Tameside £1,493.

Nationally, stamp duty for detached homes has increased from £1,170 in 1997 to £9,903 last year.

House prices fell for the eighth month in a row during June with the average cost of a home in the UK falling by by 0.9 per cent during the month to £172,415, according to Nationwide Building Society.

Earlier this month the Chronicle reported how families were struggling to pay bills with a 49 per cent increase in the number of repossession orders made on homes between January and march this year compared with the same period in 2007.