Stamp duty holiday is not enough!

September 3, 2008 by OPPE News

Industry insiders have welcomed a 12-month UK stamp duty holiday as a “step in the right direction”, but many said more needed to be done.

On Tuesday chancellor Alistair Darling unveiled a rescue package for the stalling British housing market, which included raising the threshold for the one per cent tax for 12 months.

Other measures included free loans for first-time buyers and assistance for families struggling with mortgage repayments.

The National Association of Estate Agents (NAEA) said it was pleased a decision had been made on stamp duty, but called for more action.

NAEA chief executive Peter Bolton King said: “Today’s announcement is a step in the right direction. However, I am still concerned as I do not believe the decisions made will help the entire market.”

He said the stamp duty ‘holiday’ would have little effect in the south east and said ‘free’ loans should have been made available for more than just first-time buyers.

David Bryant, development director for house builder Persimmon Homes, said the company was “relieved” the government was taking action but said he had hoped for more from ministers.

Barry Naisbitt, chief economist at Abbey, said the moves would “undoubtedly” help lower income households but would only have a limited impact on the wider market.