25 Mar

Property market 'will be boosted by stamp duty decision'

Property market 'will be boosted by stamp duty decision'

The decision by chancellor Alistair Darling to increase the stamp duty threshold for first-time buyers (FTBs) has been welcomed.

According to the Council of Mortgage Lenders (CML), the announcement will provide a boost to the property market.

In his Budget, the politician revealed that the government is to increase the cut-off point from £125,000 to £250,000 for those looking to get a foot on to the housing ladder.

The CML predicted that this change will impact on around 136,000 FTBs over the next year.

However, it suggested that the policy decision would have had more effect if it had applied to all people seeking to buy residences, not just those looking for their first abode.

Director-general of the organisation Michael Coogan remarked: "The Budget offers a modest potential boost to the housing and mortgage market in terms of reducing transaction costs for first-time buyers and potentially improving efficiencies for lenders."

A previous holiday on stamp duty for dwellings priced at under £175,000 came to an end on December 31st.

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