According to Nationwide 75% of first-timers are paying the property tax, compared to 18% 10 years ago.

At the same time, government revenue from the tax has risen from �830m in 1997/8 to �3,590m in 2003/3, as house prices have soared.

Nationwide says first-time buyers should not pay stamp duty on properties worth less than �150,000.

Under current rules, stamp duty is paid on properties above �60,000.

With the average house now costing �138,730, according to Nationwide's latest monthly data, the property tax is catching an increasing number of buyers.

STAMP DUTY RATES Up to �60k: 0% �60,001 to �250,000: 1% �250,001 to �500,000: 3% Over �500,000: 4%

In London, the South East, South West and East Anglia - in general, the most expensive parts of the UK - more than 90% of first-time buyers now pay stamp duty.

As property prices have risen outside London over the last year, more first-time buyers have been caught within the stamp duty net.

In the East Midlands, West Midlands and Northern Ireland more than 65% of first-time buyers now pay stamp duty.

Alex Bannister, Nationwide's group economist, said: "Nationwide Building Society is calling on the government to raise the stamp duty threshold from �60,000 to �150,000 for first-time buyers.

"This is just below the level at which stamp duty would now begin had it been linked to the house price index over the past 10 years.

Halifax, the UK's largest mortgage lender, has also expressed concern about stamp duty.

It said the average first-time buyer now paid the equivalent of around 6% of their deposit or around two weeks of their annual income on the tax.

In 1993 the typical first-time buyer paid no stamp duty, except in London. In 2003, for the first time, the average first-time buyer in every region in the UK paid stamp duty, it said.

Market role

House prices have become so unaffordable for many young people that the number of first-time buyers in the market is at its lowest level for 20 years.

The dearth is causing concern among some commentators.

And traditionally the disappearance of first-time buyers is viewed as a signal that house prices are about to slow down.

% of first-time buyers in each stamp duty band
Current stamp duty bands
Stamp duty levy	0%	1%	3%	4%
Purchase price	�0-�60,000	�60,001 - �250,000	�250,001 - �500,000	Over �500,000
Scotland	56%	43%	1%	0%
Northern	55%	44%	1%	0%
Wales	44%	55%	1%	0%
Yorks & H'side	43%	55%	2%	0%
North West	42%	56%	2%	0%
N. Ireland	34%	65%	1%	0%
West Midlands	26%	72%	2%	0%
East Midlands	25%	74%	1%	0%
East Anglia	7%	91%	2%	0%
South West	5%	88%	6%	1%
South East	2%	90%	7%	1%
London	2%	85%	12%	1%
UK	25%	70%	4%	1%
Source: Nationwide