First-time buyers 'rushed to beat stamp duty deadline'
Monday, 15 February 2010 12:00
By myfinances.co.uk staff
New lending to first-time buyers reached a two-year high in December as people looking to get their foot on the property ladder rushed to beat the end of the stamp duty holiday.
Statistics from the Council of Mortgage Lenders (CML) show there were 24,900 mortgages agreed with consumers purchasing their first property in the last month of 2009 - the highest figure since November 2007.
In total, these deals were worth £2.9 billion - 26 per cent higher than the previous month.
More than half (55 per cent) of the loans were for houses valued at less than £175,000, making them eligible for exemption from stamp duty.
During December, some 10,300 first-time buyers and 11,200 movers bought a property worth between £125,000 and £175,000 - up 63 per cent and 49 per cent respectively compared with November.
"This clearly indicates a rush to complete purchases before January, when stamp duty would have added an additional one per cent of the purchase price onto the transaction costs," the CML said.
According to Nationwide, the average UK house price was £162,103 in December.
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