Housing organisations in stamp duty pleas

Housing bodies have urged chancellor of the exchequer Alistair Darling to use his first budget this afternoon to double the threshold of stamp duty.

The Home Builders Federation (HBF) and the Council of Mortgage Lenders (CML) have both called for the one per cent rate threshold of the tax to be doubled from £125,000 to £250,000.

HBF executive chairman Stewart Baseley said: "Raising the threshold to £250,000 would remove 90 per cent of first-time buyers from paying stamp duty, reducing their costs and helping more people make the important first step."

The CML said that had the threshold risen in line with house price inflation since 1997 it would now be £171,000.

As an alternative to hoping for help in the budget, those who self build their homes can avoid stamp duty altogether no matter what the ultimate value of the house, provided the plot of land is below the £125,000 threshold.


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