Expert warns stamp duty holiday benefits depend on postcode

The Prime Minister's tax holiday will be beneficial for some areas of the country and not for others.

That is according to Judith Heywood, deputy property editor for the Times.

Ms Heywood has said that the government's decision to implement a temporary exemption on stamp duty on homes priced below £175,000, will mean little to those who live in 'expensive' areas.

Last week's Land Registry data showed that the average home costs £178,364, but as Ms Heywood points out the average cost of a property in Greater London is £348,366.

Those living in the south-east, south-west and the east of England will not be able to take advantage of the stamp duty holiday either, Ms Heywood reports.

First-time buyers in the north-east, north-west, Yorkshire and Humberside, West Midlands, east Midlands and Wales could fare better as the average house price is £125,000.

While it may be beneficial for some, Ms Heywood has said that when the cost of a deposit is taken into account, it will take 'more than this short-term stamp duty holidays' to reinvigorate the market.

House Prices News posted on 05/09/2008 18:23:05