Govt under pressure to extend stamp duty holiday

Housing experts are calling on the government to extend its stamp duty concession for first time buyers (FTBs).

The temporary tax exemption for FTBs purchasing homes worth up to £250,000 is due to end next month.

After that, buyers will be asked to pay tax starting at 1% on properties purchased for £125,000 or more.

The tax rate for properties worth over £250,000 will be unchanged at 3%, while for those worth between £500,000 and £1m it will be 4%. Last year a new 5% band was introduced for properties worth more than £1m.

Experts are calling on the government to extend the FTB concession.

Bernard Clarke at the Council of Mortgage Lenders said: "With FTB purchases having slumped by almost two thirds in the last decade, the cost of extending it would be relatively small.

"But it makes a big difference to individual buyers at a time when confidence is fragile. We are concerned that it may result in a decline in first-time buyer activity in the spring when we would normally hope to see it pick up."

Peter Bolton King, chief executive of the National Association of Estate Agents, added: "It is vital any support for this fragile part of the market is not removed. The government should be doing everything it can to help."