Stamp duty movement is too little too late

John Charcol responds to government's announcement on stamp duty

Total suspension would have cost less than ?2 billion www.charcol.co.uk launches survey into government's decision.

"The housing market has spluttered through the last few months with indecision on whether there would be a redefining of stamp duty clearly costing the wider economy.

A suspension for one year on stamp duty for properties up to ?175,000 is absolutely not the answer to the problem.

Yes, it will help a small minority of people, but the issue lies more with mortgage lenders and their 'shut up shop' attitude to lending above certain loan-to-values.

The government needs to address this situation above all others," says Ray Boulger of John Charcol, the UK's leading mortgage adviser.

"This move will effectively move the current starting level up by ?50,000, something that should have been done years ago, and little more than that.

One has to question whether the government has truly thought this through.

John Charcol has calculated that a total suspension of stamp duty would only have cost the government less than ?2 billion a year which we would argue is a small price to pay in order to ensure a fair playing field for all, breathing life into the market, let alone their own flagging reputation." For more in depth calculations please visit Ray Boulger's blog at http://www.charcol.co.uk/knowledge-resources/ray-boulgers-blog/.

Charcol has also launched a survey on its website asking what consumers think of the government's decision and whether it is a good move.

This can be found at www.charcol.co.uk.

Back to top