Friday 23 March 2018

First-time buyers are losing out as owners fear extra cost of moving on

Stamp duty is having a devastating knock-on effect on the availability of properties on the market, writes Jerome Reilly

New negative equity mortgages designed to boost the stagnant housing market won't work unless punitive stamp duty is abolished, according to property experts

Even though first-time buyers are exempt from having to pay the tax, stamp duty is still stopping them getting on the housing ladder. That's because those who are already on the property market in a so-called starter home or apartment are reluctant to trade up to a larger property because they will have to find an extra €26,000 in stamp duty on a €495,000 purchase.

The result is that the supply of homes suitable for first-time buyers is still extremely tight, according to Dublin auctioneer Vincent Kelly.

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