Stamp duty return 'could harm recovering property market'

Date:Wednesday 18th November 2009
Author: Suzanna Kavka

The return of stamp duty could hit certain areas of the country much harder than others, the Royal Institution of Chartered Surveyors (Rics) has reported.

Estate agents in the Midlands, Wales and Scotland - where the average house price is above the £125,000 tax threshold due to return in January - fear there may be a downturn in sales.

The industry body reported that in the three months to October the number of first-time buyers was increasing, although in Yorkshire a fall was noted.

Simon Rubinsohn, Rics chief economist, said that questions had been asked about the impact the increase in the tax threshold would have when it was introduced earlier in the year.

He added: "The additional transaction cost is still a worry to many, particularly first-time buyers and is a threat to the market in the areas of the country that are still seeing a weak price environment."

A change in the structure of the tax could be the best solution to ensuing that the market remains buoyant across the country, Mr Rubinsohn suggested.