PBR 2009: No extension of Stamp Duty holiday
Share
Alistair Darling, chancellor of the exchequer has not extended the Stamp Duty holiday in his Pre-Budget Report.
Properties under £175,000 are currently exempt from the tax but the threshold is due to return to the original £125,000 limit next year.
Darling says: “By the time the Stamp Duty holiday finishes at the end of this month, I expect 240,000 homebuyers to have been helped.”
The government has however extended its Support for Mortgage Interest Scheme for another six months.
Darling says: “With unemployment still likely to rise, it would not be right to withdraw all support now for homeowners.
“Last year, I improved the Support for Mortgage Interest scheme to provide better cover for mortgage interest payments for those who had lost their jobs.
“Over 220,000 people have been helped so far. I have decided this additional support will be extended for a further six months.”
Peter Bolton King, chief executive of the National Association of Estate Agents, says: “The chancellor missed an open goal with his statement.
“By ignoring the advice of much of the property industry there is a real danger that the property slump that has hit thousands of families hard over the past 12 months will hit thousands more, harder, in the year ahead.
“Stamp Duty unfairly distorts the property market. It is prohibitive to people looking for a step up the housing market and unfairly penalises people investing in buy-to-let portfolios.
“As a first step the chancellor should keep the Stamp Duty threshold as it is when the current holiday ends in December. More importantly, the government should commit to a complete reform of the tax to produce something that is fairer for everyone.”
Darling also announced that the taxpayer costs for bailing out the banks is now only estimated at £10bn, down from his previous estimation of £50bn.
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
View results 10 per page | 20 per page
Readers' comments (13)
Anonymous | 9 Dec 2009 1:42 pm
Peter Bolton is taking an extremely myopic view of this development. It was well expected and is essential if Great Britain PLC is going to stand any chance of balancing the books and avoiding national bankruptcy.
Unsuitable or offensive? Report this comment
Anonymous | 9 Dec 2009 1:43 pm
Own Goal by Labour, surely a village idiot would've calculated that maintaining the stamp duty threshold as it is currently would be a vote winner. Maybe they've accepted their time in office is done so who cares.
More problems for the housing market...ta very much.
Unsuitable or offensive? Report this comment
Dale Knight | 9 Dec 2009 1:48 pm
Only £40bn out Darling......what a plonker!
Unsuitable or offensive? Report this comment
Anonymous | 9 Dec 2009 1:49 pm
Buyers need all help possible in the current climate and would help the receovery of the property market. Scrapping HIP's should also be on the agenda. Pathetic
Unsuitable or offensive? Report this comment
Anonymous | 9 Dec 2009 2:11 pm
So Alistair Darling has lit the blue touch paper for all those property purchase transactions (yet to complete) between £125001 and £175000, and the fuse will burn until 31st December when purchasers will have to stump a further £1250 + to complete. How many transactions/chains are going to stall? How will this affect the fragile property market, and the brokers who have potential earnings tied up in this pipeline?
Unsuitable or offensive? Report this comment
Anonymous | 9 Dec 2009 2:16 pm
Is it just me or does everyone agree that this is not a good move by the government? Firstly as some people start to beleive things may get better and decide on a possible house move next year, the rug is pulled from under them with the thought of the extra costs of moving. Adding Stamp Duty back into the pot of already high moving costs. And secondly the Stamp Duty Threshold of £125,000 is ridiculously low for the current house prices, a complete overhaul of this ancient tax should definatley be a priority.
Unsuitable or offensive? Report this comment
Bita Mills | 9 Dec 2009 2:52 pm
Why are people surprised to see another blunder by the government?!! We should all be used to their incompetance by now...and I very much doubt conservatives are going to be any better!
Unsuitable or offensive? Report this comment
Matthew Sedgley | 9 Dec 2009 3:53 pm
After reading Darling's latest load of twaddle supporting his latest set of unhelpful measures and reforms all I can conclude is that he attended the same school of economics as Margaret Beckett?
Unsuitable or offensive? Report this comment
Anonymous | 9 Dec 2009 4:07 pm
Another nail in the coffin for a country that was once "Great" Britain but which Blair, Brown and Darling have systematically sent spiralling down the tube. Turns out that our health service is one of the worst in the Western world too - even with the billions that the Government has thrown at it over the years. What a surprise!
Unsuitable or offensive? Report this comment
Anonymous | 9 Dec 2009 4:30 pm
Looks like I will have to cancel the purcahse of my property now. We just cant afford an additional £1650.
Absolutely appalling decision
Unsuitable or offensive? Report this comment