Print friendly version 12 Mar 2008

Budget 2008: Stamp Duty

The Government has pledged to postpone stamp duty for those on shared ownership schemes until they own 80% of their home.

Today's Budget announcement by chancellor Alistair Darling, contained a number of points concerning affordable housing. In addition to suspending Stamp Duty payments for those on shared ownership schemes until they own 80% of their property, Darling also pledged to extend key worker shared equity schemes to people who can afford to buy 50% of a property. Previously, potential homeowners had to be able to afford 75% of the property in question to participate in the scheme.

Peter Bolton King, chief executive of the National Association of Estate Agents, criticised the Government's lack of action on Stamp Duty in not rolling out cuts in the tax to all first-time buyers. He said: "Recent reports show that the average stamp duty bill for first-time buyers has almost doubled over the last five years and total stamp duty revenue from residential property sales in the UK rose by 40% in 2006/07 to a record £6.4bn. This is taxation gone mad!

"This government needs to realise that the housing market is slowing and the gravy train is over. This was an opportunity for the Chancellor to give the housing market the boost it really needs to keep the market moving but he has failed the British homeowner again."

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