Calls for Budget to end stamp duty

The Chancellor should announce a suspension of stamp duty on all properties in this week's Budget, a third of potential buyers have said.

A new survey has found 37% of people looking for homes said they would like Alistair Darling to extend the current lack of stamp duty on homes costing up to £175,000 to include all properties during the market's downturn

Calls were also made by 18% of people asked in the FindaProperty.com poll to increase the threshold from £175,000 to £250,000 to help the lower end of the market.

Homes costing between £175,000 and £250,000 have to pay 1% of stamp duty, which rises to 3% on properties worth between £250,000 and £500,000, and 4% for places worth more than £500,000.

While 30% felt improved mortgage availability would be most beneficial for getting on the property ladder, a huge 58% said a stamp duty reform would help them buy a home.

The majority of people said they would spend any money they saved on stamp duty on things relating to their new home, with 38% saying they would put it towards renovations and decorating, 24% would make additional mortgage repayments and 16% would put it towards moving costs.

A further 9% would use the money to pay off debt, 7% would save it and 2% would use it to fund other purchases such as a car or holiday.

Michael O'Flynn, from FindaProperty.com, said: "Arguably suspending stamp duty could be more effective in stimulating consumer spending than the recent cut in VAT.

"House purchases tend to generate a lot of subsidiary spending on white goods, furnishings, decorating and building work and all of these would generate tax income for the Revenue."

(http://www.findaproperty.com/) FindaProperty.com