Govt increases stamp duty threshold

Govt increases stamp duty threshold

Tuesday, 02, Sep 2008 05:59

The government has unveiled a temporary increase in the stamp duty threshold, bringing it up to £175,000.

The increase applies to all purchases from tomorrow (September 3rd) for one year when it will then be reviewed. The announcement forms part of a package of measures being announced by the government today to help first-time buyers and attempt to kickstart the stagnant housing market into life.

Buyers of properties worth more than £250,000 will continue to have to pay three per cent in stamp duty, and homes above £500,000 four per cent.

Other measures are expected to include government approved sale and rent back schemes to stop those in the most danger of defaulting on their loans having their homes repossessed.

Communities and local government secretary Hazel Blears told BBC Breakfast News this morning that spending money now to avoid families having their homes repossessed was preferable and less expensive than having to house them afterwards, when they risk being made homeless.

Reaction to the annoucement has been mixed with several organisations having been taken by surprise by the move.

Royal Institution of Chartered Surveyers (RICS) spokesman James Scott-Lee said: "RICS is pleased that the government has ended the uncertainty over stamp duty but there should be a complete holiday from stamp duty followed by reform of the slab system to a marginal system similar to income tax."