House hunters 'must move quickly' to beat stamp duty deadline

07/09/2009

First-time buyers and others looking to move up the property ladder need to act fast if they do not want to miss the government's £600 million stamp duty holiday, a mortgage lender has warned.

Since September 2008, homes valued at between £125,000 and £175,000 have been exempt from the one per cent stamp duty tax.

According to sales figures for the past two quarters, Abbey Mortgages said around 35,000 potential buyers will be looking for a property in this price bracket between the end of the month and December 31st, when the stamp duty holiday ends.

As it can take at least three months to complete a house sale, the lender is urging people to submit their mortgage applications by September 30th if they want to avoid paying the extra tax.

Company director Nici Audhlam-Gardiner said: "First-time buyers have been hit hard by the costs of climbing on to the ladder and for these people this is a golden opportunity to make a big saving."

Buyers could face paying a combined £53.7 million on top of the cost of their property if they miss the stamp duty deadline, Abbey Mortgages noted.

According to Nationwide, the average price of a UK property currently stands at £160,224.

Tags; Housing Debt and Bills, Young Family Finances,

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