Stamp duty holiday 'should be extended'

09 November 2009

Written by Jeni Browne

Property buyers including those with buy to let mortgages would benefit from the government extending the current stamp duty holiday, it would seem.

Gary Smith, president of the National Association of Estate Agents (NAEA), said that the stamp duty threshold should remain at £175,000 and not be moved back down to £125,000 in the new year as planned.

Reverting back to the old system could see the property market lose momentum after a number of positive months, he stated.

Mr Smith also suggested that lowering the threshold could result in "an unwelcome pause in the housing market".

"We can only hope that common sense will prevail and that the government will raise the lowest level at which stamp duty will apply to £175,000 for an indefinite period," the NAEA representative explained.

Chancellor Alistair Darling announced during his Budget speech in April 2009 that the stamp duty holiday would remain in place until the end of this year. The government originally raised the threshold to £175,000 when the UK moved into recession in 2008.

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