Labour backbench calls for stamp duty holiday extension

A group of Labour backbenchers has called on the government to extend the current stamp duty holiday beyond December 31st.

An Early Day Motion was raised by MP Lindsay Hoyle yesterday (December 2nd), urging the government to extend the exemption increase "in order to stimulate the housing market further and to help the economy grow in 2010".

Under the increased threshold, properties bought for under £175,000 are exempt from the tax, but the figure is set to revert back to £125,000 from next year.

The call was welcomed from the National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents.

Peter Bolton-King, chief executive of the NAEA, said: "The housing market is on the road to recovery, in particular we're seeing the return of first time buyers.

"If the stamp duty exemption is not extended at this fragile point of recovery, we fear that months of work will instantly unravel causing a great deal of damage to the market."

A recent NAEA survey revealed that 91 per cent of estate agents feel the threshold should remain at £175,000 for "the foreseeable future".

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