Chancellor raises stamp duty threshold to £175,000
In a surprise move to try to revive the housing market, the embattled Chancellor said that the £125,000 threshold at which buyers pay 1 per cent stamp duty will be raised from tomorrow and frozen at the new level for one year.
Some see this as a positive move by the Government to stimulate first time buyers, however the stamp duty was never the problem, it has always been the initial deposit which is, and will always be the largest stumbling block.
"If there are no competitive mortgages available then knocking a maximum of £1,750 off a purchase is a complete and utter waste of time," said Michael White, a property lawyer at Dawsons LLP, noting the average property price in London stands at around £375,000.
There is a small advantage to property investors, but in the grand scheme of things what we all need is Lenders to shift the emphasis back to the recognition the use of incentives. I do not think we will get back to the days of No Deposit Finance, however as we are seeing better rates from many Lenders you can bet your life that one will take the plunge soon.
It is no surprise to hear that the only real winners in all of this is the Housebuilders.
Their shares have leapt today at the beginning of this year long Stamp Duty "holiday".
The UK biggest housebuilder 'Wimpey' has seen its share price clime by 8.9% to 61p, while Persimmon's stock rose 11 per cent to 428.5p.
Bovis Homes, Bellway and Barratt Developments also saw their shares jump by 6.4 per cent, 6.9 per cent and 5.7 per cent respectively.
Andy Phillips
Posts
