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Written by rosalind renshaw

The NAEA has told the Government to stop being so stubborn about the Stamp Duty break for first-time buyers, after HSBC said nine in ten FTBs had not paid the tax since the exemption began two years ago.

The tax break is due to end on March 24 and has been labelled ‘ineffective’ by housing minister Grant Shapps.

But HSBC said that first-time buyers were up by one-fifth since the start of the year as they scrabble to beat the deadline. It also said that in the last two years Stamp Duty had not been paid on half of the FTB transactions which would otherwise have attracted the tax.

Peter Bolton King, chief executive of the National Association of Estate Agents, said:  “These figures are a wake-up call for the Government.

“Ministers claimed that the Stamp Duty exemption for first-time buyers failed. But property specialists, including us, have argued consistently that removing Stamp Duty makes a real difference to people struggling to get on to the property ladder.

“The Government should reverse its stubborn approach to Stamp Duty and reintroduce the exception for first-time buyers.”

According to the figures, sourced from the Council of Mortgage Lenders, of the 331,899 first-time buyer loans taken out between the start of the Stamp Duty holiday on March 24, 2010, and the end of 2011, 89% were for properties priced under £250,000.

Over this period, 286,299 first-time buyers bought a Stamp Duty-free property, with 159,872 benefiting from the Stamp Duty holiday by buying their first home priced between £125-£250,000. This is half of all of those first-time buyers who bought a home over the past two years who would otherwise have been liable to pay the additional tax.

Peter Dockar, head of mortgages at HSBC, said: “We have seen a 20% increase in approvals for first-time buyer loans in the first six weeks of the year as they rush to take advantage of the Stamp Duty holiday.

“With the deadline fast approaching, we will continue to offer a helping hand to first-time buyers. As well as offering a number of competitive deals for customers with as little as 10% deposit, we have also committed to making £3bn available to first-time buyers in 2012 whilst also offering a number of fee-free mortgages to help keep upfront costs down.”

Comments

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    'Ministers claimed that the Stamp Duty exemption for first-time buyers failed.......' Er no this is what the brainless nerd Shapps said and I think he is singular minister and not plural minister.

    God save us from amateurs and I consider that Shapps is the biggest fraud of all in this. He spouts drivel but I suppose he gives us some mileage and someone to laugh at on a regular basis.

    • 18 February 2012 09:43 AM
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    It's totally irrelevent to sales volumes.

    However, anything that stops the Government p*ssing even more taxpayers money up against a wall should be applauded.

    • 17 February 2012 11:49 AM
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    Oh dear Brit you are never going to get to 5 are you! Is there not a lost all me money on rent site for you to infest, are you that idiot Dave under anher name?

    • 17 February 2012 11:21 AM
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    AC - You're right. The rush of FTB's are those who were going to buy anyway in the coming months. It just makes sense to buy now if you were planning to in the short term anyway. These people aren't buying because of the holiday.

    Brit1234 - 30% of what? Assuming it's a % of what YOU want prices to be? I'd say that you have about £4,800 then?

    • 17 February 2012 11:10 AM
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    I have always thought that complaining about stamp duty is the equivalent of owning a Rolls Royce and complaining about the cost of petrol...

    Apart from anything else, I do not know of one person who has decided to buy or not based on this temporary stamp duty holiday.

    I don't think it will make the slightest bit of difference considering that deposit requirements and mortgage application fees are as high as they are.

    • 17 February 2012 09:10 AM
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    Brit 1234 - if you need the SDLT removed to afford a first time buy then you can't afford it.


    NAEA is lost on this - it needs RICS to front it up.

    • 17 February 2012 08:50 AM
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    As a FTB with now a 30% deposit I'm happy for stamp duty to return, it will mean cheaper property after March.

    I have also saved the stamp duty in advance.

    I'm not against the lower bracket being raised to £150K though.

    • 17 February 2012 08:43 AM
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    On the ball NAEA again, almost at D day and they decide to comment? Have you only just found out this was happening next month??

    • 17 February 2012 08:41 AM
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