A lack of clarity over the future of stamp duty has had a negative impact on house sales, according to the National Association of Estate Agents (NAEA). However, housing minister Caroline Flint has dismissed the calls for immediate action and claims a lack of credit is the major factor affecting house sales.
Last week, the Chancellor, Alistair Darling, hinted at a possible stamp duty holiday as part of a range of measures to revive the housing market.
But the NAEA says a lack of clarity has caused many potential buyers to hold off until the Government makes its position clear.
A poll of its members revealed 24% had seen sales fall through as a result of the stamp duty rumours, as buyers wait to see if they could save thousands through a suspension of the tax.
The Chancellor has refused to confirm or deny that stamp duty will be changed, and critics say this is likely to completely kill the ailing market if the position is not made clear immediately.
However, Caroline Flint says estate agents and the media have driven speculation that the Government will suspend the tax, but still refused to rule out such a move.
A full announcement of the Treasury’s housing market rescue package is expected during the pre-budget report in the autumn.
Filed under: Economy, Mortgages, Property | Tagged: stamp duty |
UK Mortgages 
Following July everything had started to improve ever so slightly. Property prices had fallen pretty fast and quite hard and the lenders had become far happier with the lowered risks they were taking. They are still not happy enough to increase their loan to values but happy enough to slightly drop their rates which has eased things up alot and created a well needed feel good factor of hope.
Some purchasers with their eye on the ball could see things improving and come to decide it a reasonable investment, given future predicted property rises, to write off their future losses on buying in the current market as minimalistic……this was however until Alistair Darling decided to stick his eyebrows in and declare that he was contemplating playing with stamp duty.
He was unsure whether he would cut the 1% band on stamp duty for a while, or perhaps it could be a range of amendments, anything from exempting all property sales from stamp duty, allowing buyers to defer paying the tax or reducing stamp duty for first-time buyers.
Nice one Darling!!! Now no one’s buying anything as they’re all waiting for his next instalment. But it’s all gone quiet. Will it ever happen? Nobody knows. Most probably darling Darling doesn’t even know.
He needs to sit down with his cup of coco and have a real good think about what he’s doing as he has effectively crippled the already slowed housing market and near enough brought it to a complete standstill.
If he does do something significant with regards to the tax soon it could make all the difference and maybe even jump start our economy again at least a little. If he doesn’t then things will undoubtedly go from bad to worse.
Apart from that! Everything’s tickedyboo!
If you’re remortgaging and you’ve got at least 10% equity in the property and decent enough income it’s all fine, perhaps a little more expensive than last year but digestible.
If you’re purchasing it’s a fantastic time to buy as houses aren’t selling and you can pretty much offer whatever you like. Also if you time it right your completion may coincide with Darlings next offering and you may miss out on the stamp duty tax. Property purchase usually takes around 3 months anyway so holding off too long is not entirely necessary to achieve this, if indeed it happens.
That’s all from me now then.
Until next time,good luck everyone with whatever you do and please don’t forget, if you or anyone you know needs a mortgage please click on the link below and we guarantee to contact you back within the hour with Free Independent Mortgage Advice.
http://www.hurleysfinancialsolutions/enquiry_online.html
All the best
Jason Hurley BSc Hons FPC CeMAP
Hurleys Financial Solutions
Telephone: 01727 758470 Mobile: 07958 450124 Email: jason@jhurley.co.uk