Autumn Statement: Govt scraps 'ineffective' FTB Stamp Duty holiday

Chancellor George Osborne has not extended the Stamp Duty holiday for first-time buyers, with the Autumn Statement revealing the government believes it has proved “ineffective”.

The first-time buyer Stamp Duty holiday on properties up to £250,000 will end as planned on 24 March 2012, with the housing strategy prioritised for offering "better value for money".

The Treasury's autumn statement report states that the government will publish analysis showing that the tax break has not helped boost first-time buyer numbers.

Its decision comes despite multiple calls from bodies within the mortgage industry, including the CML and Legal & General, to extend the Stamp Duty holiday to help stimulate the housing market and support not just first-time buyers.

However, the autumn statement report says: "The government is publishing analysis showing that the Stamp Duty Land Tax relief for first-time buyers has been ineffective in increasing the number of first time buyers entering the market. This relief will therefore end on 24 March 2012 as planned.

"The government is instead prioritising more effective measures which provide better value for money as set out above and in Laying the Foundations: A Housing Strategy for England."

Read the autumn statement in full here