Government announces rescue measures for housing market

Posted under General by Michael

The UK government has announced exemption of stamp duty on properties costing less than £175,000, effective 3rd September 2008, for the next 12 months.

The current threshold of £125,000 has been raised to £175,000 to facilitate revival of the housing market, which had been facing the worst downturn due to mortgage squeeze and the falling house prices.

The government claimed that half of the property transactions would benefit from the exemption of stamp duty. The average cost of property in the UK is currently £164,000.

The first-time buyers in inner London, where the average property cost is £285,268 will not get the exemption. The buyers in the South West, South east and East Anglia would also not benefit due to the prevailing high prices.

However buyers in the North of England would be the biggest beneficiary of the government’s measure, since the average housing price over there is only £129,700.

Soon after meeting the Prime Minister, Gordon Brown, the Communities Secretary, Hazel Bears, informed that stamp duty exemption was the first of many announcements which would be made to help people in the prevailing economic climate.

The new relief measures announced by the government include a scheme to help those at risk of losing homes in repossession.

Halifax’s spokesperson welcomed the Government’s announcement, saying that the measure would help the housing market.