Chancellor Alistair Darling could announce a raising of the Stamp Duty threshold to £250,000 in today's Budget. Analysts say it would be a classic pre-Election sweetener, letting virtually all first-time buyers off the tax.
If the Chancellor does go ahead, the move would cost the Treasury £1bn, at a time when public finances are in crisis but could transform the housing market.
The NAEA is also calling on Darling to introduce a tax incentive scheme for first-time buyers. It wants Darling to consider a scheme such as the $ 8,000 First Time Home Buyer Tax Credit in the States.
First-time buyers – defined as anyone who has not owned a home for three years – are all eligible for the tax credit after their purchase.
The NAEA is also calling for more house building and the suspension of HIPs.
Peter Bolton King, chief executive, said: “First-time buyers are central to a properly functioning housing market, so it makes good economic, social and political sense for Mr Darling to consider a one-off stimulus for FTBs, similar to the incentive scheme in the United States.
“Although consumer confidence in the market is slowly being restored, low levels of supply in new housing and a lack of mortgage finance means the market is not moving as fast as it could.
“If Mr Darling is really serious about helping first-time buyers, he needs to review pointless and expensive schemes such as HIPs and Stamp Duty which are impeding progress at a crucial time of recovery.”
Comments
there is also a FTB incentive scheme in Australia which works well and keeps the market active.Lets hope he has the housing market in his sights