Total lift on stamp duty called for

Posted: 02 Apr 2009 13:04:24 GMT

Mortgage provider Jon Charcol has spoken out ahead of the looming budget decision from chancellor Alistair Darling, claiming that a removal of the need to pay stamp duty is needed.

Suggesting stamp duty should be lifted on all residential properties, Jon Charcol has encouraged the chancellor to reduce the cost of buying a home.

Doing so would not just stimulate demand - which is already high - but would make it easier to buy a home, which is one of the hurdles faced by potential owners at present.

"There are signs of confidence returning to the property market but the lack of mortgage finance is a major constraining factor," said Jon Charcol senior technical manager Ray Boulger.

"Borrowing the extra required to finance three or four per cent stamp duty was easy until the credit crunch, but can now be difficult with the much lower maximum loan to values in today's market."

Costing less than the temporary VAT cut announced last year, Jon Charcol suggested the move would cost the government less than £2 billion thanks to the already-reduced revenue collected from stamp duty as a result of falling house prices and falling transactions.

Buying a property online could also provide a means of cutting out expensive estate agents, allowing buyers to spend more on their property.



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