Stamp duty rises 807% in 10 years

First-time buyers in London face a crippling stamp duty tax bill of £7,898 on average, an increase of 807 per cent since 1997, figures reveal today.

According to property search engine Zoomf.com, the average price of a one-bedroom flat in central London is now £263,253.

This means stamp duty at three per cent, or almost £8,000. When a typical five per cent deposit of £13,162 is required, the total needed by first-time buyers to get on the property ladder is £21,000, not taking into account legal fees, removal costs and buying furnishings and appliances.

In 1997, the average London flat cost only £87,088. At that time stamp duty would have been £871. Out of the tens of thousands of properties listed on Zoomf, only four homes in central London are under the £125,000 stamp duty threshold.

Three are Kennington studio flats in an ex-local authority block, between £120,000 and £125,000; the fourth is a houseboat. Zoomf co-founder Mike Carter said: "Stamp duty is an unfair levy on many, presenting yet another barrier onto the housing market for first-time buyers."