CML calls for stamp duty concession to be extended
The Council of Mortgage Lenders (CML) is calling on the government to announce a reprieve for the stamp-duty concession, currently due to end in March 2012.
If the current window closes, the CML think that there is likely to be a slump in mortgage lending next year and more first-time buyers will struggle to buy a home.
The CML believe that there is a good case for fundamental reform of the way revenue is raised by stamp duty. Approximately 87% of the money generated by the tax comes from property sales of more than £250,000 in value.
Revenue from stamp duty has fallen considerably from a peak of £6.7 billion in 2007 - 2008 to just over £4 billion in 2010 -2011. Reinstating the 1% tax on property valued between £125,000 and £250,000 would raise modest funds and be unhelpful given the fragile state of the economy, according to the CML.
CML director general Paul Smee commented: "The housing market can act as a force for growth in the economy."
18 November 2011
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