Alistair Darling maybe set to announce an increase in the Stamp Duty threshold to £250,000 in today's Budget. Leading analysts say it would be a classic pre-Election sweetener, letting virtually all first-time buyers off the tax.
The move would cost the Treasury £1bn but could transform the housing market.
Many industry stakeholders are calling on Alistair Darling to introduce a tax incentive scheme for first-time buyers. This scheme operates successfully in the US with an $ 8,000 First Time Home Buyer Tax Credit. 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.
Although consumer confidence in the market is 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 Alistair Darling is serious about helping first-time buyers he clearly need to review Stamp Duty which are impeding progress at a crucial time of recovery.
Watch this space for news later…….
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