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Stamp duty golden goose is a dead duck - Zoopla

The positive effects the government had predicted from the stamp duty holiday have fallen short of expectations, according to Nicholas Leeming, commercial director for property research company Zoopla.

By Peter Carvill | Published Nov 26, 2009 | comments

The government had predicted that the stamp duty holiday would save property buyers £600m between September 2008 and this year.

However, the forecast fell short by over 70 per cent as savings of just £173m were made, according to Mr Leeming.

He said: "The stamp duty holiday has so far failed to re-invigorate the housing market in the way that the government predicted, with limited relief for first-time buyers particularly in the south-east [of England].

"With the government's plummeting stamp duty revenues, the golden goose of stamp duty now seems somewhat of a dead duck. Rather than ending the stamp duty holiday, the government should seriously consider extending it by making first time buyers permanently exempt and by giving others the ability to defer payment for up to say five years."

According to figures from Zoopla, to date, the south-west has gained the most from the holiday, with 30.7 per cent of homes in the area benefiting. London, however, has been worse off with less than 13 per cent of home sales qualifying.

Mark Loydall, director of Leicestershire-based Cambourne Financial Planning, said: "To be honest, as advisers, we are only doing a few mortgages.

"As far as we are concerned, the mortgage market is dead. That is what we find on a day-to-day basis. There have been a few more enquiries but these are only preliminary ones which are not affected by stamp duty at all."

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