Stamp Duty holiday to end on 1st January 2010

Despite calls from the industry and backbench MPs, Alistair Darling confirmed in today's Pre-Budget Report that the Stamp Duty ‘holiday' will not be extended.

As of 1st January, Stamp Duty will once again be levied on all properties costing £125,000 and over, rather than kicking in at £175,000 as has been the case since September 2008.

Stamp Duty will be charged at 1% of the property’s value on all homes costing £125,000 to £249,999, 3% on property worth £250,000 to £499,999, and 4% on property costing £500,000 and over.

Peter Bolton King, chief executive of the National Association of Estate Agents, said:

“The Chancellor missed an open goal with his statement.

“By ignoring the advice of much of the property industry there is a real danger that the property slump that has hit thousands of families hard over the past 12 months will hit thousands more, harder, in the year ahead.

“Stamp Duty unfairly distorts the property market. It is prohibitive to people looking for a step up the housing market and unfairly penalises people investing in buy-to-let portfolios.

“As a first step the Chancellor should keep the Stamp Duty threshold as it is when the current holiday ends in December. More importantly, the Government should commit to a complete reform of the tax to produce something that is fairer for everyone.”