Stamp duty shift has little impact

The increase to the stamp duty threshold looks set to have little impact on the property market with eight out of 10 people saying it would not encourage them to move, a survey has shown.

The Government announced earlier this week that it was abolishing stamp duty on properties costing up to £175,000 for one year as part of a package of measures to help struggling homeowners and first-time buyers.

But 80% of people said the increase would not encourage them to move house, while 73% said they did not think it would boost the property market, according to website Moveme.com.

The Government's initiative received a lukewarm response from the property industry, with most people saying it would do little to boost activity in the housing market or halt the current price slide.

Instead commentators said taking steps to improve the liquidity of the mortgage market was key to increasing transactions.

Figures released on Thursday by Halifax also showed that the move would have a disproportionate impact around the country.

Only around 12% of property sales in London were for below £175,000 in the past year, compared with 75% in the North and 72% in both the North West and Yorkshire and the Humber.

Keith McNeilly, co-founder of Moveme.com, said: "The Government's rescue package, released this week, has failed to meet the expectations of much of the industry and aspiring home buyers.

"While a revision to a lower stamp duty band is welcome, the Government has not gone far enough to make any significant impact on our ailing property market.

"A complete overhaul of the archaic stamp duty system is needed, along with action to improve liquidity in the mortgage market if we are to successfully revive an industry so crucial to the economy."

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