A complete stamp duty suspension is needed to help first time buyers, claims the NAEA.
The National Association of Estate Agents (NAEA) is urging chancellor Alistair Darling to suspend stamp duty completely when he unveils his pre-budget report in the next few weeks. The organisation claims such a move would help thousands of first time buyers who are currently unable to purchase homes.
Stamp duty is paid at a rate of between one and four percent depending on the value of the property. From September 3rd this year, the threshold over which the tax applies has been raised to £175,000, up from £125,000 previously. This new threshold will remain in place until September 2nd 2009, when it will be re-examined by the government.
However, the NAEA claims that even with the higher threshold, many first time buyers remain priced out of the housing market. It is calling for stamp duty - which it refers to as a tax on aspiration - to be put on hold while a full review of the system is carried out.
Chris Wood, president-elect of the NAEA, said: "The chancellor must realise that the housing market is not a piggy bank for his personal use - the gravy train is over and stamp duty cannot be used irresponsibly to boost his coffers."
His comments come after Scottish communities minister Stewart Maxwell launched a similar call for a stamp duty review, insisting the chancellor had not gone far enough with his revision of the lower threshold.
