Stamp duty concession 'must be extended'

The stamp duty concession needs to be extended, according to the Council of Mortgage Lenders (CML), which is also calling for fundamental reform of the tax's structure.

Analysis by the organisation reveals the number of people moving home declined following the end of the last stamp duty concession in December 2009.

The CML is keen to avoid a similar scenario in March 2012 when the next concession ends, concerned it would threaten already fragile market confidence.

CML director general Paul Smee noted: "While there is no clear evidence that the stamp duty concession has incentivised an increasing number of first-time buyers to buy, it is highly likely that there would have been fewer of them if it had not been in place."

Many first-time buyers will struggle to pay stamp duty.

Recent research by Santander shows a quarter of first-time buyers are seeking second jobs and overtime opportunities to help them raise enough money for a deposit.

A third of non-homeowners are not confident they will ever own a property.

Published by Kevin Round