David Bexon, Managing Director of SmartNewHomes.com, comments:
“The Chancellor’s pre-budget report is likely to be geared heavily towards consumer spending, with the Government keen to put some cash back in the pockets of lower income households. However, it is vital that the plight of the ailing housing market is not ignored at this crucial time.
“If the Chancellor is looking at tax cuts to stave off recession, then now is surely the time to conduct a significant overhaul of the stamp duty system. The temporary £175,000 stamp duty suspension does not go far enough, and does not assist a broad enough spectrum of home buyers. The lower threshold needs to be raised significantly to a level that ensures the majority of first-time buyers are exempt. This will instill some much needed confidence and send out a positive message to the market as a whole.”
National Clearing House Scheme
Bexon adds:
“The Government’s National Clearing House scheme has worked to ease some of the pressure facing house builders. However, the fund needs to be extended considerably to alleviate the unsold stock weighing heavily on many high-volume developers, and deliver some much needed affordable housing to some of the most overstretched local authorities.
“Tax relief for smaller businesses is also expected, and I hope that enough is done to help developers at grass-roots level – those producing just a handful of homes a year, who are currently struggling to raise enough finance to stay afloat.”
See Also: Press Releases (371)
Date Published: 21 November 2008
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