15-Oct-2009
STAMP DUTY HOLIDAY HAS COST CHANCELLOR 0.1% OF BANK BAIL OUT - tax relief must be extended to aid market recovery
Increasing the stamp duty holiday to all properties for sale up to £250,000 would make 61% of all properties currently on the market exempt from stamp duty land tax, based on homes available on the FindaProperty.com website. Currently, 38% of all properties for sale are less than £175,000, so buyers are exempt from paying stamp duty on them. However, the website data reveals that a further 23% are priced between £175,000 and the £250,000 tax threshold.
Michael O'Flynn, Director of FindaProperty.com, said:
“The stamp duty holiday has already benefited many first time buyers and this has contributed to the upturn in the housing market, with property prices stable or rising for the sixth consecutive month. Extending the holiday beyond 31st December and making it applicable to all properties under £250,000 would provide an important impetus to the fragile housing market and a welcome shot in the arm for the economy.
“The Government must have the courage of their convictions and stand by this initiative. The housing market recovery is still in its early stages and the removal of this tax relief now could negate any headway that has been made over the past few months. The cost to the Chancellor has been a drop in the ocean compared to other spending to help improve the economy, but the difference it has made to market confidence is significant.
“We urge the Government to rethink their plans regarding stamp duty tax for the good of the market recovery."
Ends/
Notes to Editors
* 112,000 properties priced between £125,000 and £175,000 was sold between September 2008 and June 2009 according to Halifax. Assuming each paid an average of £1,500 and calculating on the basis of a 12 month period, total cost would be £201,600,000.
http://www.lloydsbankinggroup.com/media/pdfs/halifax/19_09_09Residental_Stamp_Duty.pdf
Number of properties for sale data compiled by Findaproperty.com on 5 October 2009.
About FindaProperty.com
FindaProperty.com is a leading property website with a comprehensive search facility for house-hunters looking for property to buy or rent.
The site also holds independent editorial on the housing market, as well as guides to different aspects of the buying, selling and renting processes. These contain local information about council tax rates, school tables, crime rates, comments from local residents and photo albums, giving a general feel for an area.
Launched in 1997, FindaProperty.com now publishes the details of more than 650,000 properties from over 9,800 agents, attracting over 2.9 million unique visitors and generating 76 million page impressions a month. FindaProperty.com is recognised as a leading source of consistent and reliable UK housing market data and property news.
For further press information please contact The Wriglesworth Consultancy:
Brian Thorn, Account Director: 020 7427 1400 / b.thorn@wriglesworth.com
Suman Hughes, Senior Account Manager: 020 7427 1400 / s.hughes@wriglesworth.com
James Craig, Account Executive: 020 7427 1400 / j.craig@wriglesworth.com