AMI- Stamp duty rise is too restrictive

The government has "missed an opportunity" to increase activity in the housing market by limiting its increased stamp duty threshold to first-time buyers.

This is the view of the Association of Mortgage Intermediaries (AMI), which said the tax is still "sorely in need of proper reform".

It was announced yesterday (March 24th) by chancellor Alistair Darling that the stamp duty threshold for first-time buyers will double from £125,000 to £250,000 from today.

While the AMI said the move was "welcome support" for the UK's housing and mortgage market, the organisation expressed concerns about how it will be paid for.

Robert Sinclair, director of the AMI, said: "By introducing a new level of the tax at £1 million we continue to have an unfair slab tax that will cause a £10,000 jump in the tax for a one pound increase in the price of the property.

"This smacked of political opportunism. With the increase from one to three per cent at the £250,000 figure as well, this is a significant cost to be borne and added to loans."

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