Stamp duty freeze?

Gordon Brown is considering introducing a suspension on stamp duty as the head of his economy recovery proposals, a national newspaper has claimed today.

The proposal, which was revealed in the Sun, would most likely be a temporary suspension, allowing homeowners to postpone payments of the stamp duty.

Asked about the report on Radio 4's today programme, the chancellor Alistair Darling refused to rule out the measures.

Currently someone purchasing a house worth £200,000 would be required to pay £2,000, while a £1 million pound property would cost the buyer £40,000 in tax.

Dave Bexon, managing director of smartnewhomes.com, believes that the measure would only work with a range other actions.

He said: "Scrapping stamp duty over the short term is likely to entice a surge of buyers back to the market.

"However, while this is likely to increase activity in what is currently a struggling market, we need to see this action coupled with the freeing up of mortgage finance if it is to prove a real success."

UK Property News posted on 05/08/2008 15:32:41