The National Association of Estate Agents has again called for stamp duty to be abolished for first time buyers. The Association has long campaigned for stamp duty to at least be reduced and payable only over £60,000.
Complete abolishment or a reduction seems unlikely as there looks like a £10bn shortfall for the Government that will need to be made up.
Our View
The housing market is difficult enough as it is at the moment, especially for first time buyers trying to get on the ladder. A bit of leeway on stamp duty would go a long way but would be very one-sided. Good for first time buyers but not for Gordon Brown.
Although the Government has fattened their coffers with increased Inheritance Tax revenue, they still need to raise more money. We believe that stamp duty may well be increased at the next budget. It may be one of the only ways the Chancellor has of dampening the housing market, in line with a few more interest rate rises. If he were to abolish or reduce stamp duty, it could backfire and actually fuel the housing market further.