'Stamp duty cut wouldn't reduce renter numbers'

26 2008
Even if the government does scrap stamp duty, the majority of prospective first-time buyers would still struggle to get a foot onto the property ladder, it has been claimed.

Earlier this month, chancellor Alistair Darling hinted that he is looking into the possibility of doing away with the unpopular tax so as to give the stagnant housing market a much-needed boost.

However, the government has since played down any speculation that such a move is imminent, with the chief executive of Firstrung believing that even this step would do little to help Britons out of the rental sector.

"I think you have to look at the stamp duty on the average price of a home; it's on average, £5000," Paul Holmes explained.

"Five thousand pounds discount in effect is not going to heal all the problems in the housing market in one stroke."

In addition to high up-front costs, including stamp duty, a lack of affordable mortgage products on the market has been cited as a reason behind so many Britons opting to stay in the rental sector for the time being. ADNFCR-1219-ID-18748903-ADNFCR

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