HBF Chairman Praises Darling's Stamp Duty 'Holiday'

by Robin Pilgrim, LawAndTax-News.com, London

08 August 2008

Stewart Baseley, Executive Chairman of the Home Builders Federation (HBF) on Tuesday responded to media reports suggesting that the UK government is considering a stamp duty holiday.

Speculation was rife when Chancellor of the Exchequer, Alistair Darling refused to confirm or deny reports in the UK media that the government was planning to suspend stamp duty on house purchases as it searches for ways to arrest a slowdown in the country's economy.

However, it was also suggested in reports that Mr Darling was favouring the idea of deferring the tax, so that house buyers would still have to pay it, but at a later date.

Commenting on the possibility of a suspension, Mr Baseley observed that:

"This is something the HBF has been championing for a number of months as one of a range of proposals to invigorate the housing market. It is a welcome initiative and shows that Minsters appreciate the problems the current housing market situation is causing people looking to buy and sell properties, and the impact it is having on the wider economy."

"However, if it is to deliver the desired benefits, it needs to form part of a coordinated package of measures implemented quickly. These need to include action to get liquidity back in to the mortgage market, as well as further steps to assist first time buyers and moves to ensure much needed housing production is maintained."

The Home Builders Federation (HBF) is the principal representative body for private sector home builders in England and Wales.

However, others were not quite so positive on the suggestion of a stamp duty suspension, with business and financial adviser Grant Thornton stating last week that despite the fact the proposals could help kick-start the ailing property market, they would likely result in the Treasury having to fund a tax shortfall of up to GBP7bn from other sources.

Recommended