Stamp duty - pressure on the Government

BACKBENCH Labour MPs are putting pressure on the Government to continue with the current exemption of Stamp Duty for properties under £175,000. - by Alison Steed

BACKBENCH Labour MPs are putting pressure on the Government to continue with the current exemption of Stamp Duty for properties under £175,000.

In an Early Day Motion, tabled by Lindsay Hoyle, and signed by another seven MPs, the backbenchers are calling for the extension of the Stamp Duty holiday, which is due to expire on December 31.

The move is being supported by both the National Association of Estate Agents (NAEA), and the Association of Residential Letting Agents (ARLA).

Peter Bolton-King, chief executive of the NAEA and ARLA, said: "The current Stamp Duty ‘holiday’ for properties lower than £175,000 is due to expire at the start of 2010. The housing market is on the road to recovery; in particular, we're seeing the return of first time buyers. If the Stamp Duty exemption is not extended at this fragile point of recovery, we fear that months of work will instantly unravel causing a great deal of damage to the market.

"The industry is crying out for the Chancellor to take action in his Pre Budget Report next week - in a recent survey by the NAEA, 91 per cent of estate agents called for the threshold to remain at £175,000 for the foreseeable future."

Both the NAEA and ARLA have set up the “1808 Coalition” – named after the date that Stamp Duty was first extended to property sales in Great Britain – and it has already received the backing of the Association of Mortgage Intermediaries (AMI), Building Societies Association (BSA), Council of Mortgage Lenders (CML), Home Builders Federation (HBF), and the National Landlords Association (NLA).

 

Alison Steed is editor and co-founder of MyMoneyDiva.