According to research from TSB, nearly 25% of FTBs are not taking into account stamp duty costs when making an offer on a house.
With most FTB house purchases likely to fall into the 1% tax bracket, it is imperative this extra cost is factored in. If you take the average price of a house at £168,356, then a further £1,683 in stamp duty will need to be found on top of other fees such as solicitors, surveys and land registry searches.
It seems that established homeowners aren’t much better at budgeting, with 14% of these buyers not considering stamp duty when buying their second or third home.
Some regions fare better than others, with those in the east being the most stamp duty savvy with 50% factoring it in, while those in Wales need to be more finance aware with 25% not considering it at all.
More reassuringly, 41% of FTBs are well prepared and have done their calculations, setting aside the exact amount needed to pay for stamp duty, while 45% of those buying their second or third home have also included this tax in their budgets.
The price people are willing to pay for a property can also be affected by stamp duty with 9% of homebuyers capping their bid in order to fall into the lower stamp duty bracket.