Call made for stamp duty holiday to be extended

Date:Thursday 3rd December 2009
Author: Susanna Kavka

The current holiday on stamp duty needs to be extended to ensure that the mortgage market can recover, according to two industry bodies.

The National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA) have supported the actions of a group of Labour MPs who have put pressure on the government to prolong the current holiday for homes which have a value under the £175,000 threshold.

Under the current plans, the level at which stamp duty is payable will revert to £125,000 on January 1st next year.

Peter Bolton-King, chief executive of the NAEA and the ARLA, said that the industry wants the chancellor to announce an extension in the pre budget report next week.

"In a recent survey by the NAEA, 91 per cent of estate agents called for the threshold to remain at £175,000 for the foreseeable future," he added.

The NAEA said last month that stimulating the housing market was essential if the economy was to avoid moving in a 'W' shape, where the economy will decline again once it has managed to escape recession.