FTBs making use of Stamp Duty Holiday, new evidence shows

First-time buyers FTBs have been making the most of the stamp duty holiday and continue to do as its end draws near, according to the National Association of Estate Agents NAEA.

A January report by NAEA has shown that 23 per cent of all sales made across the first month of 2012 were to FTBs, which is up two per cent on December.

This is the third month running that the proportion of sales to FTBs has increased. The last time the number was this high was in May 2011 when it reached 24 per cent. Although this latest increase is no doubt down to buyers using their last opportunity to save money.

"First-time buyers seem to be making the most of the Stamp Duty Holiday before it comes to an end in March," the president of NAEA, Wendy Evans-Scott said.

"The NAEA and other property specialists campaigned hard for the government to introduce the tax exemption to support  first-time buyers , and these latest figures certainly suggest that stamp duty is a key factor for those on tight budgets purchasing their first home."

Stamp duty is reinstated from March 24th when buyers will once again have to pay the one per cent levy on all homes costing between £125,000 and £250,000.

"We are deeply disappointed that ministers have axed this support for a crucial part of the housing market which has benefited so many house-hunters in getting onto the property ladder," Ms Evans-Scott added.

With FTBs making up between a fifth and a quarter of the buyer's market, there are concerns that the end of the holiday could deflate the housing market.

Stamp duty was first introduced in the UK in 1694, following on from a similar levy being charged in the Netherlands.

Its attempted enforcement in the American colonies brought about the famous cries of no taxation without representation. The undercurrent that stemmed from this notion was a contributing factor in the outbreak of the War of Independence.

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2012-02-22 16:38:20 © Moneyextra.com