A return to the previous bands for stamp duty, when the current holiday is due to end on the 31st December 2009, could have a detrimental effect on the recovery of the housing market in regions that are already lagging behind, according to the latest research from RICS (Royal Institution of Chartered Surveyors) released today.
RICS favour moving from the current slab structure to a marginal system with no homebuyer paying anything on the first £150,000 of their new home. As part of a government initiative home buyers purchasing property in the UK priced between £125,000 and £175000 did not have to pay stamp duty. This was aimed at kick starting the UK housing market.
Commenting, Simon Rubinsohn, RICS chief economist said:
“At the time of its introduction, we did question how great an impact this policy would have and judging by the fact that only surveyors in certain parts of the country are particularly concerned about the ending of the holiday, it could be said that some areas of the UK hardly even noticed the change
Surveyors in the West and East Midlands, Wales and Scotland believe that they will see a drop in activity in 2010 following the end of the stamp duty holiday. Overall, however, the majority of Chartered Surveyors are not expecting the end of the stamp duty holiday to have a distorting effect on the housing market despite the benefit it has provided first-time buyers. Unsurprisingly it is those working in London and the South East who overwhelmingly agree that it is not forcing more houses onto the market now, and will not lead to a drop in activity once the old system is re-introduced. Sell Uk Property Fast
