Stamp duty holiday 'a desperate failure'
The stamp duty holiday on properties worth up to £175,000 has helped only around a quarter of the amount of buyers that the government estimated, it has been revealed.
New research from Zoopla.co.uk shows that 115,447 buyers benefited from the tax break in the first year since its introduction and saved a combined £173 million.
However, this is far below the government's forecast of £600 million.
As a result, many people may have come to the decision that property to rent in Kensington or another part of London continues to be a more affordable option than buying, especially when house prices in the capital are, on average, higher than elsewhere in the country.
Commenting on the findings, Paul Holmes, chief executive officer at Firstrung, said: "If the initiative was to jumpstart first-time buyers into the housing market then it has been a desperate failure."
He added this was principally because it only managed to achieve a quarter of its intended target.
Written by Andy Britten
Published 20th November, 2009
© 2009 Estates IT Limited
London Rental Property News By London Borough / Category
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In terms of helping first-time buyers climb the property ladder, the stamp duty holiday has been a "desperate failure", it is claimed - and this may have prompted Britons to rent instead.