FTB Stamp Duty exemption should be permanent, says BSA
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The Building Societies Association is calling on the government to make the exemption from Stamp Duty for first-time buyers on properties under £250,000 permanent.
Ahead of the chancellor’s Budget Report on March 23, the trade body is urging the coalition to take action to help savers and borrowers and promote competitive and equitable financial markets.
Adrian Coles, director-general of the BSA, says: “Obtaining a mortgage remains very challenging for first-time buyers, who must raise a large deposit. Transaction costs act as a further barrier to house purchase, so we call on the government to make permanent the exemption from Stamp Duty for first-time buyers on properties under £250,000.
“The government should also go a step further and look at reforming the current slab structure of the tax - it’s time Stamp Duty for all buyers was reviewed.”
He praised the government for its commitment to the continuation of Mortgage Rescue and the 12-month extension to the Support for Mortgage Interest criteria.
But Coles adds: “We would, however, urge the government to consider paying SMI at the same rate as the borrower’s mortgage to ensure that vulnerable borrowers continue to receive adequate support.”
He says the BSA also welcomes the coalition’s commitment to foster diversity, promote mutuals and create a more competitive banking industry, adding it would be good for competition to keep a reformed Northern Rock independent of the big banks.
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