Could suspending stamp duty revive the housing market? on 100 Mortgages

As we know the housing market is facing a bit of a crisis at the moment, as a result the Association of Home Information Pack Providers (AHIPP) is asking that the Government to suspend stamp duty, in the hope that this could help to revive the ailing housing market. Things are set to get even worse as volumes look as though they will fall to 650,000 in 2008, which is why urgent action is required.

AHIPP have said that if the Government was to suspend stamp duty on property purchases on homes of less than £200,000, it would almost certainly help to restart the ailing housing market. Mike Ockenden, from Association of Home Information Pack Providers, has said “With mortgage lenders tightening their credit criteria, every penny counts for those wishing to move home or buy their first property.” He also added “By suspending stamp duty on lower cost homes many would find that they could now afford to move or in the case of first time buyers meet lenders criteria.”

Stamp duty revenues are looking to be down by at least £1.5bn in 2008 due to the lack of house transactions, Ockenden has said that a temporary reprieve would be in the Governments interest. AHIPP are now challenging the Government to make the necessary action, if they wish to help revitalize the housing market.

Ok this is such a nice idea on paper, but this is something that the Government would not even consider, but is a nice idea.

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