First-time buyers represent two-thirds of all NewBuy completions, analysis from the lenders’ body showed. It highlighted the growth of the government-backed scheme in the last quarter of 2012 and called for it to be extended beyond 2015.
The CML said Stamp Duty was widely recognised as deterring borrowers: “Given that NewBuy allows access to home-ownership for borrowers with a deposit of only 5%, we believe the government should look at the anomaly that means that many of these buyers are taxed on their purchase because it is captured by Stamp Duty.
“For those buying properties for more than £250,000, Stamp Duty adds a further 3% to their costs. There is a real anomaly and potential impediment here, in a scheme which is trying to limit up-front costs for creditworthy borrowers with limited savings.”
The article, from the CML’s latest newsletter, encouraged Osborne to consider and also criticised the slab structure of Stamp Duty but suggested as reforms would mean a loss of revenue for the Treasury, the issue was likely to remain on the side lines.
It welcomed proposals for a more progressive tax in Scotland.
