Mortgages & stamp duty - 2012 Budget news.
By not extending the stamp duty holiday, the UK mortgages market could be adversely affected as fewer first time buyers may be able to afford to step on to the property ladder.
Wendy Evans-Scott who is the President of the National Association of Estate Agents commented saying that the Budget week dealt first time buyers a double blow.
Firstly the Chancellor failed to offer any real help to first time property buyers and secondly he failed to extend the stamp duty concession.
George Osborne has missed the chance to support green shoots recovery in the UK property and mortgages market.
In order to get the housing market moving again UK home-owners need to have confidence in selling their home and first time property buyers need to be encouraged to climb on to the property ladder.
The NAEA has repeatedly called for UK stamp duty to be updated and moved away from it present ‘slab’ structure. At the housing market peak between 2007and 2008, stamp duty revenue was in excess of £14 billion. Between 2009 and 2010 it halved to £7 billion, which led the Treasury to highlight the fact that money is in short supply. However revenue could be significantly increased by investing in the mortgages market.
Lenders such as the Halifax are offering incentives to first time buyers such as a 50 % refund on their stamp duty bill. This is great news for first time property buyers, but at Deal Direct we feel the Government should also be doing more.
For highly competitive first time buyer mortgage rates contact Deal Direct today.
