| ::Rate it: | ||
|
Rating:
|
 |
4 |
 |
| ::Stamp duty 'will affect regions' - 17th November 2009 |
| The end of the stamp duty holiday will have a "detrimental effect" on the housing market in areas yet to see a recovery, surveyors say. Surveyors in the West Midlands, East Midlands, Wales and Scotland are expecting a drop in activity in the market when the threshold reverts. The 1% tax will be levied on properties sold for over £125,000 from the end of the year, compared with £175,000 now. The Royal Institution of Chartered Surveyors wants the tax "restructured". The group has called for the tax not to be levied on the first £150,000 of a property's value, regardless of the price. The temporary stamp duty holiday came into force in September 2008 in an attempt to revive the UK housing market. First-time buyers According to Rics, surveyors in London and the south-east of England said the end of the temporary stamp duty concession would not impact on the market. However, average house prices in these areas are well above the £175,000 threshold. Surveyors in the north of England, where the average property costs £116,051, were also less concerned about the impact the end of the exemption would have on activity, the group said. "At the time of its introduction, we did question how great an impact this policy would have and judging by the fact that only surveyors in certain parts of the country are particularly concerned about the ending of the holiday, it could be said that some areas of the UK hardly even noticed the change," said Simon Rubinsohn, chief economist at Rics. "However, the additional transaction cost is still a worry to many, particularly first-time buyers, and is a threat to the market in the areas of the country that are still seeing a weak price environment." Last week, the Council of Mortgage Lenders calculated that 132,500 house purchases, funded with a mortgage, had escaped stamp duty in the past year. It means 27% of all the house purchases agreed since then have escaped the 1% tax that would have been levied on properties sold for between £125,000 and £175,000. A coalition of seven groups, including the National Association of Estate Agents, has called for an end to stamp duty. |
| Source of this article : |
| From www.bbc.co.uk/news - 17th November 2009 |
| Date of this item added : |
| 2009-11-18 |