A recent statement by the Conservative party stated that in the 10 years since the Labour party came to power the cost of getting onto the property ladder for first time buyers has tripled.

It also said that due to the current government’s policy of not increasing stamp duty thresholds in line with house price increases more and more people are liable for the tax.

The Conservatives said that it was now time for the government to adopt a policy in line with theirs in order to abolish stamp duty for anyone buying a property up to £250,000.

In 1997 when Tony Blair came to power first time buyers in England paid on average £58,391 for their first home and at that time stamp duty did not apply to properties less than £60,000 in value. This meant that the average first time buyer had no stamp duty liability, but, by 2007 this figure had risen to £173,134 leaving a significant number of new home buyers paying a hefty tax bill.

Eric Pickles, the shadow secretary for communities and local government, said that because Gordon Brown had only increased the lower band of stamp duty to £125,000 the average first time buyer now faced a £1,731 bill.

He also said that it was not just first time buyers that had suffered, all home movers have seen an increased tax burden due to the fact that the £250,000 threshold where stamp duty of 3% applies and the £500,000 level where a rate of 4% is payable, have not been increased either. This meant that if a first time buyer chose to add the cost of the stamp duty to their mortgage they would also pay interest on the tax for the duration of their mortgage term as well as leaving themselves in a more vulnerable position in regard to negative equity should property prices fall.

Mr Pickles stated “One of the most damning indictments of Gordon Brown’s record is that the number of first time buyers has plummeted to its lowest level for decades.”

“His stealth tax of stamp duty is pushing more and more buyers to over extend themselves on their mortgages, leading to higher interest rates as well as the possibility of negative equity if house prices tumble.”

“If Ministers really wanted to help people onto the housing ladder for the first time, they would adopt the Conservatives’ proposals and abolish stamp duty for first time buyers up to £250,000. Affordable homes are the bedrock of stable and safe communities. We need to make it easier to get on, and move up, the housing ladder.”

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