PBR: Darling not extending stamp duty holiday
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Chancellor Alistair Darling has not extended the stamp duty holiday due to end on December 31.
Speaking during his pre-Budget report today, Darling failed to mention an extension of the stamp duty holiday, which is set to return to £125,000 next year.
When it ends on December 31 Darling said the holiday will have helped 240,000 home buyers.
However, reallymoving.com director, Rosemary Rogers says the Chancellor’s decision could stagnate the housing market.
Rogers says: “With no incentive to buy and the difficulties in securing mortgage finance, the end of this holiday could well see the housing market stagnate in the new year.
“New measures must be introduced to help the lower end of the market and keep people moving, without first-time buyers, who are the lifeblood of the market, the small recovery that has been made to date will simply be wiped out. “
Mortgages for Business managing director David Whittaker says the end of the stamp duty holiday comes as no surprise, and adds: “The fact of the matter is that the stamp duty holiday didn’t actually do a great deal to support the market.
“Cash rich investors and those lucky enough to have large deposits have been propping up the market for much of the last six months.”
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Readers' comments (2)
Anonymous | 9 Dec 2009 2:15 pm
I honestly believe that the stamp duty holiday did support the market, I have been in Estate Agency for a number of years including the 1989 crash. Had we not had this holiday the market would have gone the same way, we are getting numerous reports that the market is increasing and I believe that this is due to the stamp duty
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Trish Jones | 9 Dec 2009 2:24 pm
As a mortgage consultant in an otherwise very difficult market, the stamp duty holiday did increase the number of first time buyers that were seen, and also attracted people to the market to sell their properties in this price range. To go back to £125,000 will do nothing to help the current situation.The least the govt could have considered was raising it to say £150,000.
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