NAEA: Stamp duty holiday must be extended

Figures released yesterday proved that the holiday on stamp duty should be extended in order for the recovery of the housing market to continue, the National Association of Estate Agents (NAEA) has said.

The Council of Mortgage Lenders (CML) revealed that one-third of first-time buyers escaped stamp duty in September as a result of the government's temporary tax threshold.

Under the rule, properties bought for under £175,000 are exempt from stamp duty.

Members of the NAEA reported a year-on-year increase with first-time buyers entering the housing market accounting for 22 per cent in October, more than double the ten per cent reported in September.

NAEA president Gary Smith said: "First-time buyers are the critical foundation level of the housing market. We can see from both the CML and NAEA figures that, with their return, the housing market is in tentative stages of recovery."

Mr Smith claimed the "short-sighted" policy would create a pause in the recovery of the housing market and called on the government to change the threshold indefinitely.

"The government, at the very least, must extend the stamp duty holiday that is currently scheduled to end in December," he added.

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