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Government urged not to make stamp duty changes
26 August 2008 11:30
Reforming stamp duty would prove ineffective at revitalising the property market, one broker has predicted, stating that a major correction in house prices is inevitable
Chancellor Alistair Darling hinted earlier this month that a stamp duty holiday could be introduced in order to revive Britain's sluggish housing market, but no confirmation of government policy is due until October's pre-budget report.
Firstrung CEO Paul Holmes has now warned that such a measure would have little effect, claiming that market forces will work to negate the £5,000 discount it would entail for the average homebuyer, with house prices moving upwards accordingly.
He also asserted that the government should not start meddling in the market and that house values will fall by 35 per cent from last summer's levels due to their having been priced substantially above what is affordable.
Mr Holmes therefore advised first-time buyers to base their offer for any property on what they think it will be worth in a year's time, explaining that that way they may be able to acquire a house more cheaply.
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