Gordon Brown froze stamp duty at 1993 levels and raised the Inheritance Tax (IHT) threshold by a mere £7,000, from £255,000 to £263,000.
The industry was swift to condemn the minimal IHT increase, which has been branded a further stealth tax after the property boom has pushed house prices to unprecedented levels. Meanwhile, Tim Crawford, group economist at the Halifax, suggested that if stamp duty had been raised in line with house price inflation, the 1 per cent threshold would be £143,000, not £60,000.
Andrew Frankish, operations director at Mortgage Talk, said: “The Chancellor’s unwillingness to raise stamp duty thresholds will make life even more difficult for first-time buyers, as well as squeezing savings and budgets for those looking to move house.”
He added: “Although the Budget positively demonstrated the strength of the British economy, more could have been done to stimulate demand at the bottom end of the housing market.”
