Calls for gov’t to extend stamp duty exemption

In December last year 18,700 homes were bought by first-time buyers, up 7 per cent on November and 14 per cent on December 2010.

The proportion of first-time buyers who were exempt from paying stamp duty on properties also rose to 53 per cent in December, from 50 per cent in November

Paul Smee, director general of the CML, said: “We have been expecting a flow of first-time buyers on to the market as the stamp duty exemption ends in March. December’s figures appear to show this has now begun.”

Since the stamp duty holiday began in March 2010, first-time buyers have benefited from not having to pay duty on homes worth between £125,000 and £250,000. After 24 March the stamp duty threshold will fall back to £125,000.

Charles Haresnape, managing director of Aldermore Residential Mortgages, called on the government to extend the stamp duty exemption to prop up the UK’s floundering housing market.

He said: “The cost to the government would be minor in comparison to the benefit it would offer home buyers on tight budgets. It is incumbent on both government and lenders to do everything possible to help first-time buyers and this important sector of the market.”

Michael Brill, director of Essex-based Baronworth (Investment Services), also said the government should extend the exemption for at least another year.

He said: “There are few first-time buyers about and ending stamp duty will do more harm than good. Stamp duty for all first-time buyers should be stopped regardless of the price of the property to help the economy.”