02 September, 2008
The Government has today announced a package of reforms to help first time buyers and those struggling to pay their mortgage but Michelle Thompson, Conveyancing expert at Forbes Solicitors believes the changes are not enough!
From the 3rd of September Stamp Duty will be suspended for one year on houses costing less than £175,000. This will mean a potential saving of up to £1,750.
Whilst any efforts to assist first time buyers are welcome the Government could do far more to help all home buyers.
There has been no other reform to the remaining tax bands which means that properties worth more than £250,000 will still attract a tax of 3 per cent and those above £500,000 a 4 per cent tax.
Michelle comments, "The Government has had the opportunity for a fundamental reform of this outdated tax which adds significantly to the cost of a house purchase. However as house prices have increased significantly, so has the revenue for the Government. It remains to be seen whether this package of measures will be sufficient to kick start the market, or whether it's too little too late".