A RICS survey showed 56 per cent of surveyors expect the raised Stamp Duty threshold to GBP250,000 to stir up buyers over the spring and summer period.
This announcement comes fast on the heels of the previous SDLT holiday for purchases of GBP 175,000, which ended on 31 December. From 6 April 2011, all homes purchased for in excess of GBP 1 million will attract a five per cent SDLT levy - up from the current four per cent payable.
Head of Residential Agency, Andrew Turner said: “The five per cent levy on properties over GBP one million may create a short term stimulus in the market as those thinking of buying and selling will move quickly to avoid the hike from four per cent. This will filter down through the market and hopefully create more activity at the middle and lower ends as well.”
Purchases under shared ownership transactions and alternative finance arrangements may qualify for the relief in certain circumstances, he added.
Ian Baker, group managing director for Housebuilding at Galliford Try Homes, said it is mortgage lenders who now have to add their weight to the affordability crisis. “Lenders should now look again at their high borrowing criteria and make constructive moves of their own to help this group of willing and able buyers on to the property ladder. It has been left to house builders to offer schemes like our own shared equity Easystart option or the Government backed HomeBuy Direct equity loan initiative to stimulate the market for buyers with limited deposits.
“While first-time buyers will undoubtedly benefit from these savings, unless they can secure mortgages with realistic loan to values at competitive interest rates with reasonable arrangement fees, the stimulus could have limited impact.”
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