Stamp duty holiday for first time buyers should be kept

Stamp duty holiday for first-time buyers should be retained by the new Conservative-Liberal Democrat coalition – that’s the view held by a group of surveyors.

A poll by the Royal Institution of Chartered Surveyors (RICS) found that 89 percent of its members believe the measure, introduced in Alistair Darling’s pre-election Budget, should be kept.

Mr. Darling suspended stamp duty for first-time buyers purchasing residential property valued at under £250,000. The measure, which came into effect on March 25, is set to run until 2012.

In their latest survey, RICS asked specific questions on stamp duty to assess the potential impact stamp duty exemption may have on property transactions.

Eighty-five percent of those surveyed said the incentive could boost transaction levels by as much as ten percent, while one in ten felt the increase could be between 11 and 20 percent.

Latest figures from HM Revenue & Customs show that 76,000 property sales took place in June, bringing the total for the second quarter of the year to 225,000. That’s up from 216,000 deals between January and March.

Meanwhile, the average price paid by first-time buyers in the UK during May was £154,738, according to the Department for Communities and Local Government.