Estate agents call for further extension of Stamp Duty holiday

Estate agents have called for the Stamp Duty exemption introduced by the Government to be extended beyond the new proposed deadline of 31st December.

In an attempt to revive the flagging housing market, Gordon Brown announced last September that properties costing less than £175,000 would not be liable for Stamp Duty for one year. That deadline was then extended in April until the end of 2009.

The £600 million measure has helped thousands of first-time buyers by taking them out of the Stamp Duty bracket altogether, saving them up to £1,750.

The average UK property now costs £160,000. As matters stand, in the New Year regular Stamp Duty levies will be reintroduced, meaning homebuyers paying between £125,000 and £250,000 for a property will have to pay 1% of the price to the Government in tax.

During recent months, many agents have been reportedly urging those looking to purchase a home to act now, and lobbying the Government in an attempt to keep the holiday going.

Denise Stewart, Sales and Marketing Director at A Plus New Homes, said:

“First-time buyers are the life blood of the housing market and, although house prices have dropped, lenders are demanding large deposits and high interest rates in comparison to the Base rate.

“This means first-time buyers are required to find more cash up front, making it impossible for some to even think about getting onto the ladder. While other sectors of the economy are showing signs of improvement the housing market remains fragile and I believe that extending the Stamp Duty holiday would help further in stabilising the market.

“I know I am not alone in urging the government to seriously think about at least an extension so I hope that these expert requests are listened to and acted upon.”