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Stamp duty change gets mixed reaction

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Good news for first-time buyers in Kent. That's the verdict of one housing expert after the Government's move to scrap stamp duty on homes worth £175,000 or less.

But others have greeted Tuesday's announcement with less enthusiasm, saying it will have little effect for those looking to make their first step onto the property ladder.

Rob Procter, deputy chief executive of Kent Reliance Building Society, welcomed the decision by the Chancellor of the Exchequer, Alistair Darling, to raise the threshold by £50,000 from £125,000, saving buyers a maximum of £1,750.

Mr Procter said: "This change will obviously catch the vast majority of first-time buyers in Kent and all of the shared ownership/social housing carried out through housing associations - which is the major source of purchases for first-time buyers, key workers and those on lower incomes in the county.


• Audio: Listen to Mr Procter's comments on how Kent's housing market is faring better than elsewhere in the country >>>

• See what people in Rochester made of the the news in the video at the top of this page.


"What's disappointing is that there is still bad news out there. The RICS (Royal Institution of Chartered Surveyors) said, for example, that house sales are still at a 30-year low and Nationwide said prices have dropped by 10.5 per cent."

Others feel differently about the decision. "Not a great deal of help" was the reaction from Halifax's James Cooper, who said he didn't think the Chancellor's decision would kick start the market. "We feel more should be done about the three per cent stamp duty on houses costing between £250,000 - 500,000.

Jamie Hill, branch manager of Your Move in Chatham and Walderslade, said: "Anything that might give the market an injection should be welcomed - but in reality I don't think it will create a significant impact.

"By not having to pay stamp duty a house buyer may save themselves up to £1,750 - but that won't help when the person is probably not in a position to pay a much higher deposit than they did six months ago.


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"The stamp duty holiday is good for anyone already in a position to buy, but will do little, if anything, for those trying to get on the property ladder. The thing needed to really kick start the market is to see mortgage lenders' criteria change. The re-introduction of 95 and even some 100 per cent mortgages is needed to see properties start moving again.

"Last month's figures showed more people paid off mortgages than applied for them for the first time ever," he concluded.

A spokesman for the Royal Institute of Chartered Surveyors in Kent said: "We're pleased the Government has ended the uncertainty but there should be a complete holiday from stamp duty followed by reform of the system to a marginal system similar to income tax."

Mr Procter also stressed the move would not benefit the majority of people struggling with bigger household expenses.

He added: "It won't help the vast majority of ordinary people who have seen their petrol and food prices increase and their mortgages go up and they are just struggling along.


• Are you a first-time buyer looking to get on the first rung of the property ladder? Tell us your views on this decision in the 'Your comments' section below.


What the moves mean to you:

• A 12-month stamp duty holiday - but only on properties worth £175,000 or less

• A mortgage rescue scheme where families can convert all or part of their mortgages into rent. Councils, housing associations or developers would take over a share of the asset

• Homebuy Direct. Free loans for up to five years for some first-time buyers of new homes

• More money released for affordable housing, with unsold homes available to local authorities to buy.

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