HC Deb 27 June 1980 vol 987 cc362-3W
Mr. Frank Allaun

asked the Secretary of State for the Environment what is the current average cost of buying a home for owner-occupation; and what are the average monthly repayments at present for a 25 year mortgage of 90 per cent.

Mr. Geoffrey Finsberg

The average house price in the first quarter of 1980 was £22,349. The current average costs of purchase would be:

Stamp duty £112
Land Registry charge (registered property) £ 57
Building society valuation fee £39

The stamp duty payable, the Land Registry charge, and the building society valuation fee are based on scales related to the purchase price. In addition, there would be solicitors' fees and the cost of an independent survey. These costs are not collected by the Department. Assuming an advance of 90 per cent. of the average purchase price, and a mortgage rate of 15 per cent., the average gross monthly repayments would be £259; although the average net repayments would be considerably less—£184 for a basic rate taxpayer.

Year 1975 1976 1977 1978 1979
Average house price £11,945 £12,759 £13,712 £15,674 £20,143
Stamp duty £78 £201
Land registry fee £28 £31 £33 £40 £52
Building society valuation fee £25 £27 £29 £32 £37

The stamp duty payable, the Land Registry charge, and the building society valuation fee are based on scales related to the purchase price. In addition, there would be solicitors' fees and the cost of an independent survey. These costs are not collected by the Department.

1975 1976 1977 1978 1979
Average advance £10,750 £11,483 £12,340 £14,106 £18,128
Mortgage rate 11.0 10.5 10.5 9.75 11.75
Average gross monthly repayments £106 £109 £118 £127 £190