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NAEA calls for tax breaks for first-time buyers

The National Association of Estate Agents is calling for tax incentives for first-time buyers to be introduced in next week’s Budget.

As part of three key methods of boosting the housing market the NAEA is also calling for a long term review of Stamp Duty and to make sure that lending for home buyers is sensible and responsible.

The NAEA advises the chancellor to look to the USA and their $8000 First Home Buyer Tax Credit introduced last year.

Peter Bolton King, chief executive of the NAEA, says: “The evidence suggests that the US tax credit was worth billions to the housing market. A similar scheme here could encourage thousands of first-time buyers onto the housing ladder.”

He also adds “The majority of the housing industry recognises the dampening effect that stamp duty has on the market.”

And Bolton King says that without condoning irresponsible lending there are huge swathes of the country who could afford a mortgage but can’t because of “draconian lending criteria”.

He wants to see criteria relaxed and lending opened up to more people.

Chancellor of the exchequer George Osborne will deliver his first Budget at 12.30 on Tuesday.

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  • Jon 21st June 2010 at 12:19 pm

    With all the talk of tax rises and cuts in public spending I am more than a little surprised at the call for this type of subsidy – perhaps Mr Bolton King / NAEA could tell us where this money is to come from.

    Also I think the NAEA, and the rest of us, would be better served by the NAEA calling for a “tax neutral” reform of stamp duty for everybody. The current bandings are unfair and distort property prices near banding limits.

  • david barker 20th June 2010 at 4:05 pm

    The better option for the market is to take away the artifical prop of low interest rates and encourage and allow a fall in prices which will open up the market to FTB,s without encouraging excessive lending. A second step would be to reduce the tax relief on BTL mortgages which is also distorting the market.

  • FTBer 20th June 2010 at 11:35 am

    Who cared what you call for?

    As a FTBer, I will not be buying until houses return to 3x salary.

    It will take a 60% + reduction from the price of the average house, to restart the housing market.

    We can last a lot longer than Estate Agents. Weve been telling you this for years.

  • Gavin 19th June 2010 at 11:38 pm

    This would be bad news for first time buyers, its just another attempt to keep prices high now they are starting to fall again.

    Letting the property bubble burst and prices fall to normal levels is the best thing for ftb.

  • David Bolt-on King 19th June 2010 at 4:56 pm

    Yes,this is exactly how taxpayers money should be used. There may be no public funds available for Forgemasters to develop cutting edge steel pressing technology essential for carbon reduction in energy production but we must find the cash to incentive (at taxpayers expense) the God given right of the next generation of Britons to enslave themselves to a lifetime of housing related debt.Such brave government initiatives are vital to secure the future economy (of the Bolton King household)