Property: Stamp duty measure disappoints sector

Alistair Darling's decision not to raise the thresholds for stamp duty has attracted criticism from the property sector.

In a highly-priced market which is currently stagnating, many believe the alleviation would help more first-time buyers get on the first rung of the property ladder.

Mr Darling did announce exemptions for shared-ownership homes until buyers own 80 per cent of the property, but critics believe this measure does not go far enough.

Halifax chief economist Martin Ellis said the decision not to increase the thresholds was "disappointing" while SmartNewHomes.com's managing director David Bexon said it showed Mr Darling "cares little for first-time buyers".

Propertyfinder.com's major client director Nicholas Leeming added his voice to the criticism, saying the government had "shirked its responsibility", while Building Societies Association director general Adrian Coles pointed out the shared equity announcement "will do little to help those who are unable to take advantage of the shared ownership schemes".

Mr Darling also made clear the government's wish for more homeowners to adopt long-term fixed rate mortgages, announcing a consultation on the issue.

The Royal Institute of Chartered Surveyors (Rics) voiced its concern that this kind of mortgage is not suitable for all, however.

"Many borrowers will continue to have a preference for interest rates that more closely reflect underlying economic conditions," chief economist Simon Rubinsohn said, while Mr Leeming said a probe into the issue would not help those "struggling" now.

Andrew Hagger of moneyfacts.co.uk commented: "Serious thought should be given to reducing the levels of uncertainty whilst still protecting profit margins.

"Today's mortgage market survives on churn and competition, so a move to longer-term fixed-rate mortgages could completely reshape the mortgage arena."