AHIPP calls for stamp duty relief

The Association of Home Information Pack Providers (AHIPP) is calling on the Government to suspend stamp duty to revive the ailing housing market.

With transaction volumes set to fall to 650,000 in 2008, AHIPP director general Mike Ockenden says action is urgently required.

AHIPP claims suspending stamp duty on property purchases with a value of less than £200,000 would help restart the housing market, which has slumped in recent months.

“With mortgage lenders tightening their credit criteria, every penny counts for those wishing to move home or buy their first property,” says Ockenden

“By suspending stamp duty on lower cost homes many would find that they could now afford to move or in the case of first time buyers meet lenders criteria.”

According to AHIPP, stamp duty revenues could be down by around £1.5bn in 2008 due to the lack of transactions, and says a temporary reprieve would be in the Government’s own interests.

“Stamp duty is a tax for which the payer sees no direct or indirect benefit,” Ockenden explains.

“It is time for the Government to recognise that this tax is a key factor in affordability for home buyers particularly those trying to enter into home ownership for the first time. We challenge the Government to take the necessary action to revitalise the housing market which is such a key part of the troubled UK economy.”

The Liberal Democrats have already suggested the Government faces a £5bn black hole in its finances due to the rapidly declining revenues from stamp duty.

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