The housing market is at its lowest ebb for over 20 years with transaction volumes projected to fall to around 650,000 in 2008, the lowest level in recent memory. Action to kick start the failing market is now urgently required.
AHIPP director general, Mike Ockenden said: “The UK housing market is influenced by many things, but in the present economic climate, affordability is a key factor particularly for first time buyers in high cost areas. With mortgage lenders tightening their credit criteria, every penny counts for those wishing to move home or buy their first property. By suspending stamp duty on lower cost homes many would find that they could now afford to move or in the case of first time buyers meet lenders criteria.”
AHIPP projects that revenue from stamp duty will be down at least £1.5 billion this year in comparison to an 'average' year, and it is therefore in the Government's own interests that the market recovers as quickly as possible. For a relatively low cost over the next 12 months a recovery in transaction volumes as we enter 2009 would help to restore income levels from stamp duty.
