The UK government has been advised that if it does not want to put the recent recovery of the housing market at risk, then it will have to extend the stamp duty holiday, according to a news report on Moneyfacts.co.uk.
Since September last year, the stamp duty threshold has been raised temporarily from the usual threshold level of ?125,000 to ?175,000. This is part of the Government?s plan, in hopes that it will encourage people to move and ? as a result ? help the struggling property market pick up.
Despite the housing market recovering, there are fears from the Home Builders Federation (HBF) that much of the good that had been achieved could all be for naught with the holiday set to come to a close at the end of 2009.
The chairman of the federation, Stewart Baseley, said that for it is essential that housing development should have support that is maintained, in the Pre-Budget Report. The report also suggests that first time buyers have further assistances and for an extension for the HomeBuy Direct and Kickstart schemes.
First-time buyers have been hit hard thanks to the recent problems in the housing and mortgage markets. While property prices have fallen, first-time buyers still find it a struggle to find some form of finance.
Mr Baseley said the Government taking away incentives would be a bad idea: ?If I have one big message for Government, it is a plea not to withdraw incentives, as I fear to do so would potentially slow the market just as it is beginning to show signs of recovery.?
