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Many not impressed with stamp duty change

Jude Buttle

Eight out of ten people have said that the increase in the stamp duty threshold would not encourage them to move, a recent study has shown.

The Government announced earlier this week that it was abolishing stamp duty on properties costing up to £175,000 for one year as part of a package of measures to support struggling homeowners and first-time buyers.

But it seems to have had little impact, as 80% of people said the increase would not persuade them to move house, while 73% said they did not think it would boost the UK property market, according to website Moveme.com.

Many professionals from the property industry felt that the Government's initiative would do little or nothing to revive activity in the housing market or address the current price slide.

Figures released on yesterday by Halifax also indicated that the move would have a disproportionate impact around the country.

For property sales in London over the past year, only 12% were below £175,000, compared with 75% in the North and 72% in both the North West and Yorkshire and the Humber.

The co-founder of Moveme.com, Keith McNeilly, said: "The Government's rescue package, released this week, has failed to meet the expectations of much of the industry and aspiring home buyers.

"While a revision to a lower stamp duty band is welcome, the Government has not gone far enough to make any significant impact on our ailing property market.

"A complete overhaul of the archaic stamp duty system is needed, along with action to improve liquidity in the mortgage market if we are to successfully revive an industry so crucial to the economy."