Please, Mr Brown!

Here is the article from today's Times that has made me, and I suspect countless others, decide not to proceed with house purchasing until the outcome is revealed. Trouble is, if it happens, then vendors may decide to hike up their prices so nobody will be any better off, anyway.

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From The Times

August 5, 2008

Plan to suspend stamp duty for all home buyers

Sam Coates

Gordon Brown is considering suspending stamp duty in an emergency measure to kickstart the housing market, it was claimed last night.

The idea, being worked on by the Treasury, is part of a package of help for hard-pressed families.

Details passed to The Sun suggested that buyers at all levels would avoid paying the tax, which has brought in £31.5 billion over the past ten years.

Stamp duty is paid by property buyers, and is levied at 1 per cent for houses between £125,001 to £250,000, 2 per cent for £250,001 to £500,000, 3 per cent for £250,001 to £500,000 and 4 per cent for £500,001 or more.

Officials will present their findings to the Prime Minister when he returns from the Olympic Games closing ceremony at the end of the month.

Figures last month showed that stamp duty receipts were being hit especially hard by the credit crunch. The downturn means not only that house prices are falling but also that fewer homes are changing hands.

The Chancellor hinted in an interview last month with The Times that changes to stamp duty were possible. “Stamp duty is always a factor when people buy and sell houses but we need to make sure that we support the financial system too,” he said.

The Tories have pledged to abolish stamp duty for most first-time buyers.