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Changes to stamp duty
Eight out of ten people have said that the increase in the stamp duty threshold would not encourage them to move, a recent study has shown.
The government announced earlier this week that it was abolishing stamp duty on properties costing up to £175,000 for one year as part of a package of measures to support struggling homeowners and first-time buyers.
But it seems to have had little impact, as 80 per cent of people said the increase would not persuade them to move house, while 73 per cent said they did not think it would boost the UK property market, according to website Moveme.com.
Many professionals from the property industry felt that the government's initiative would do little or nothing to revive activity in the housing market or address the current price slide.
Figures released earlier this week by Halifax also indicated that the move would have a disproportionate impact around the country.
For property sales in London over the past year, only 12 per cent were below £175,000, compared with 75 per cent in the North and 72 per cent in both the North West and Yorkshire and the Humber.
Co-founder of Moveme.com, Keith McNeilly, said: “The government's rescue package, released this week, has failed to meet the expectations of much of the industry and aspiring home buyers.
“While a revision to a lower stamp duty band is welcome, the government has not gone far enough to make any significant impact on our property market.
“A complete overhaul of the archaic stamp duty system is needed, along with action to improve liquidity in the mortgage market if we are to successfully revive an industry so crucial to the economy,” Mr McNeilly added.
Peter Bolton King, (pictured) chief executive of The National Association of Estate Agents (NAEA), said of the rule changes: “We are pleased a decision was made by the government today, as the indecision over the last month has had a major effect on consumer confidence.
“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.
“The stamp duty threshold has risen from £125,000 to £175,000 and this is not going to have the impact needed to revive the housing market as London and much of the South East will have no effect due to the high average price of first time buyer properties.
“As an association we still continue to urge the government to offer a stamp duty holiday for any real positive contribution to be made to the market.
“The government’s announcement today on stamp duty forms part of a package of measures to restore confidence in the market, including offering ‘free’ five year loans of up to 30 per cent of the property’s value for first time buyers when buying a new home from developers and those who earn less than £60,000 will qualify.
“In the current market this comes as good news. However, again this is only helpful for first time buyers in the short term and it is concerning as this could have a negative effect on the second hand home market. Additionally, it is a shame that the proposal does not cover the whole market.
“It is encouraging to see that the government has taken notice of the continuing reminder from external parties that it is not just one factor that needs sorting but a number of problems.
"The NAEA welcomes today's announcement however encourages the government to continue along this path to the finish line,” Mr Bolton King added.
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