Stamp duty holiday extension `needed for mortgage market recovery`

19 November 2009

The existing `stamp duty holiday` must be extended if the mortgage market is to continue recovering, according to experts.

At the beginning of 2010, the stamp duty threshold on houses is set to fall from £175,000 to £125,000, meaning an additional 100,000 buyers will be eligible to pay stamp duty, according to The Telegraph.

But a number of players in the housing market, including estate agents, house builders and mortgage lenders, have warned that this could hamper a market recovery.

House prices have been rising in recent months, largely due to a shortage in supply because fewer people are putting houses up for sale.

But some experts have speculated that the housing market could see a `double dip` back into decline if other economic factors interrupt the recovery.

Tags: mortgage, double dip

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider.