Stamp duty rumours result on house sales slowing further
Over recent months the number of property sales going through estate agents in the UK has plummeted, with estate agents reporting some of the lowest property sales figures in years. In fact, according to recent figures estate agents have only been averaging around five property sales per months each, which is the lowest in several decades. The government has been urged by industry officials to try and revive the housing market, but so far seems to have taken steps that have actually made the situation worse.
Over recent weeks the Chancellor of the Exchequer, Alistair Darling, has indicated that the government may place a suspension on stamp duty for first time buyers that are purchasing a property up to the value of £250,000. The aim of this was to increase affordability for first time buyers, who were being hit with all sorts of costs from high interest rates to increased deposit levels and crippling arrangement fees, all of which has been impacting on the ability of the first time buyer to make a purchase.
However, the government has not confirmed that this will be going ahead, and this is what is causing the problems. Many first time buyers who were getting ready to make a purchase, and even some that had already put in an offer, have now decided to hold fire, as they are concerned that just a couple of months down the line they may be able to save money on the cost of stamp duty, which could mean thousands of pounds in savings for some.
However, until the government makes a firm decision this could further impact on already slow house sales, having the opposite effect to the one that was intended. House sale levels are already being affected by tight credit conditions, falling house prices, and lack of affordability.
Referring to Alistair Darling one industry official said: ‘If he is going to suspend Stamp duty it has to be done right away. If he hints it will be announced in an October budget then the market will die.’
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