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

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