Mias Calls For Annual Rise in the Stamp Duty Threshold
MIAS, the Mortgage and Insurance Advisory Service (http://www.mias-ltd.co.uk ), has called on the Chancellor, Gordon Brown, to consider an annual rise in the Stamp Duty threshold, in order to achieve the Government’s stated objective of extending home-ownership to two-thirds of the population.
Last month, in his tenth Budget, Gordon Brown announced that the starting point for Stamp Duty Land Tax would rise from £120,000 to £125,000, in order to help first-time buyers get onto the property ladder. That followed last year’s concession when – after accusations that Stamp Duty was imposing an unfair burden by default on ever-increasing numbers of property buyers – Mr Brown raised the lowest threshold from £60,000 to £120,000 (http://www.mias-ltd.co.uk/news-index.htm ).
However, the Council of Mortgage Lenders has calculated that more than half of all first-time buyers paid above the £120,000 threshold for their homes in the last quarter of 2005, meaning that the 2005 increase didn’t help them at all. With most industry players agreeing that the housing market is showing all the signs of a sustained recovery, it cannot be long before a significant proportion of first-time buyers are paying more than the new Stamp Duty threshold of £125,000 for their home.
Alistair Good, Managing Director of MIAS said: “Being based in the south-east of England, it is a rare occurrence for us to meet a client who can secure their first property for less than £125,000.”
He added: “Whilst we welcome the Chancellor’s recent announcements as a significant step in the right direction, Gordon Brown must commit to further, annual rises in the Stamp Duty threshold, if his concessions are to translate into real financial help for young house buyers (http://www.mias-ltd.co.uk/first-time-buyers.htm ).“
With the Chancellor’s recent move keeping the lowest rate at 1%, covering properties worth between £125,000 and £250,000, and the higher rate bands unchanged, Stamp Duty Land Tax will continue to levy substantial sums for the Government. Thanks to rising property values since the mid-1990s, Stamp Duty has raised ever-increasing amounts of money for the Treasury’s coffers. Figures published last November showed that it raised £5.5 billion in 2004 to 2005.
Commenting, Roger Milbourn, Director of MIAS, said: “The revenue raised by Stamp Duty beats that raised by duties paid on beer and spirits. These figures show that there is room for future Chancellors to make further concessions. This is vital; the provisions of the 2006 Budget will shrink over time if they do not keep pace with inflation.
“We call on the Government to continue to reduce the tax burden on home ownership, in order to keep the housing market buoyant and to help more first-time buyers get a foothold on the property ladder.”
For further information, please contact:
0845 833 0878
Managing Director: Alistair Good
Director: Roger Milbourn
Notes to Editor:
The Mortgage and Insurance Advisory Service (MIAS Ltd) is a firm of impartial mortgage advisers, offering a comprehensive service to clients seeking residential and commercial mortgages and mortgage protection.
Founded in 2002, MIAS has quickly gained a reputation for providing straightforward, impartial mortgage advice, matching clients up with some of the most competitive deals around. MIAS’s experienced brokers have expertise in all sectors of the mortgage market and look after the whole transaction from beginning to end, making the process as smooth and as headache-free as possible.
For further information on the services MIAS offers, please visit http://www.mias-ltd.co.uk
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