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This should not have any real distorting effect unless the vendor is only able to sell to FTB.

The other difference is that the increase in the cost of the house is of less importance as that is primarily funded by mortgage whereas SDLT must be ready cash supplied by the purchaser.

If there is an increase of .3% then on a £150k house this amounts to £450 or in other words an increase in the 10% deposit of £50 vs a saving of £450.

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