Peter Rollings commenting in reponse to the Chancellor's plans not to extend the stamp duty holiday
Tue 29 Nov 2011
"The failure to extend the holiday for first-time buyers will undermine the governments own attempts to kick-start the first-time buyer market across the country. While the new mortgage indemnity scheme may improve the accessibility of mortgage finance to many credit-worthy borrowers, first-time buyers will need to save for longer to fund the stamp duty bill as they move. If the government aimed to stimulate the national first-time buyer market in spite of the wider economic conditions, combining the extension of the stamp duty holiday with the new indemnity scheme would have boosted the chances of a significant increase in first-time buyer activity. In effect, Osborne is giving with one hand, and taking away with the other."
"But the Chancellor has also missed an open goal by failing to address the outdated and iniquitous stamp duty tax system. As things stand, stamp duty is a regional tax rather than a national progressive tax, and buyers in London and the South East must bear the financial brunt of the tax for the simple reason that house prices are higher. This will remain the case for as long as the duty doesnt take into account the fact that house prices are not uniform across the country. The housing market plays a vital role in supporting the UKs economic growth, and more equal and progressive tax system - alleviating the pressure on the lower tier of the market across the whole country would create a busier market. In turn, a healthy housing market would feed the wider economy, boosting demand for supporting industries and creating opportunities for builders, electricians, kitchen manufacturers and plumbers to name but a few."For further information please contact:
The Wriglesworth Consultancy Dan Pike 0207 427 1400
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