Halifax: higher stamp duty threshold is a relief during recession

Date:Monday 21st September 2009
Author: Max Freedman

Halifax has claimed that having the stamp duty threshold raised has come as a relief to those taking out mortgages during the current financial climate.

The stamp duty threshold was raised on September 1st 2008 so that properties under £175,000 would not have to pay this charge, rather than £125,000 as it was previously.

However this change is only temporary and will be switching back to £125,000 at the end of this year.

Martin Ellis, housing economist at Halifax, described it as a boost to many people who did not have to pay the charge.

He said: "The impact has added to the far more significant effect of the reduction in house prices in helping to reduce the costs of buying a home over the past year."

Research by the bank indicated that 31 per cent of buyers benefitted from the situation over the ten months preceding June.

Last week, Halifax reported that the average urban house price is £168,376, while the average rural property stands at £203,535.