Stamp Duty 'holiday' for properties under £175k
02 September 2008
The current £125,000 stamp duty threshold is to be raised so homebuyers will not have to pay the duty on properties costing up to £175,000 for the next twelve months.
The Government hopes the move will give a much needed boost to the property market by offering a saving to thousands of buyers of £1,750.
According to the Nationwide the average home in the UK was just under £165,000 in August, but experts warn raising the threshold is unlikely to have any impact in inner London where the average price is around £285,000.
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The announcement puts an end to widespread anticipation that changes were on the cards, which Estate Agents claim have led to buyers staying away or pulling out of deals over the summer.
The Government estimates the stamp duty reprieve will cost the Treasury £600 million and that 50% of all property transactions will now be exempt from the duty.
Opposition parties have described the move as “too little too late” and simply an attempt by the Prime Minister to try and save his job.
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