Despite the results of the latest Pink 1000 Index survey, which reflects the growing support within the industry for the threshold to be increased, it was unlikely that the Chancellor would bring it in line with house price inflation.
The results of the latest Pink 1000 Index survey show that 92 per cent of the brokers questioned supported the idea of increasing the stamp duty threshold from £60,000 to £150,000.
Tony Jones, managing director at Pink Home Loans, comments: “This is good news for people trying to get on to the property ladder as stamp duty currently affects three quarters of all first time buyers so this will ease some of the costs associated with buying a first home.”
“There has been growing demand within the industry for stamp duty thresholds to be brought in line with inflation and results from the Pink 1000 Index showed over 90 per cent of intermediaries agreed that the threshold should be increased to £150,000. However, my only concern about making an increase in one go was the potentially inflationary impact on house prices, especially for first time buyers, one to two years down the line.”
“Ultimately, I would want to see stamp duty levels linked to house price increases but I suspect the Chancellor had the imminent election at the forefront of his mind when making this increase so it’s unlikely that increases will continue into next year’s budget. However, there’s no doubt that raising the threshold to £120,000 will enable more first time buyers to get a foot on the property ladder and will instil more confidence in the housing market. In addition, the change in pension arrangements to enable property to be included as part of an individual’s pension arrangements will also have a positive effect on the buoyancy of the market.”
“I am also pleased to see planned increases in inheritance tax thresholds. Average house priced have steadily increased - the average house price currently stands at over £150,000 – which meant that more and more people were liable for this tax.”
“Overall, this is a positive budget for the housing market and for home buyers.”
