Labour MPs push for Stamp Duty holiday extension
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A group of Labour backbenchers has issued an Early Day Motion to extend the current Stamp Duty holiday beyond December 31.
Properties under £175,000 are currently exempt from the tax, but the threshold at which Stamp Duty is applied is due to be lowered to £125,000 as of next year.
MP Lindsay Hoyle raised the motion stating that the group of MPs “recognises the importance of the current exemption in helping stimulate the housing market which has witnessed rising prices for the past seven months; further notes the need to continue helping families and individuals to buy property in the current economic climate; and urges the government to extend the stamp duty exemption in order to stimulate the housing market further and to help the economy grow in 2010.”
It was supported by fellow MPs David Crausby, Jim Dobbin, Jon Cruddas, Bob Laxton, Jeremy Corbyn, Mark Durkan, and Bob Spink.
The National Association of Estate Agents and the Association of Residential Letting Agents have been lobbying for reform of the Stamp Duty system since October via a campaign called the 1808 Coalition.
Last month a number of industry trade bodies lent their backing to the campaign, including the Association of Mortgage Intermediaries, the Building Societies Association, and the Council of Mortgage Lenders.
Peter Bolton-King, chief executive of the NAEA and ARLA, says: “The housing market is on the road to recovery and in particular we are seeing the return of first-time buyers.
“If the Stamp Duty exemption is not extended at this fragile point of recovery, we fear that months of work will instantly unravel causing a great deal of damage to the market.”
A recent survey by the NAEA found that 91% of estate agents want the Stamp Duty threshold to remain at £175,000 for the foreseeable future.
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Readers' comments (1)
Anonymous | 3 Dec 2009 4:51 pm
i am currently in the process of buying a house for the first time. we are due to complete and exchange in January and even though the process started in September we will still have to pay stamp duty. i think it is unfair as we originally had planned to be in before Christmas but everything fell through via no fault of our own. for us to find the extra money to pay this fee is going to be incredibly hard. i think that just because the economy is growing it does not mean that people will be wanting to spend even more. us the people will need a bit of time to save our money which due to the climate has been lacking. the stamp duty rate as it is would benefit alot of young people that are looking to get on the property ladder.
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