Stamp duty concession cautiously welcomed by CML

The Council of Mortgage Lenders CML has cautiously welcomed the new stamp duty concession for first-time buyers, which could help young people take advantage of cheaper mortgage rates.

Chancellor Alistair Darling announced yesterday in his Budget 2010 that all consumers purchasing their first home will be exempt from stamp duty providing the property asking price is under £250,000.

The CML has also welcomed the retention of the existing higher rate of Support for Mortgage Interest until the end of the year.

While the organisation said wider long-term reform "would be desirable", it described the measure as being "sensible and helpful".

CML director general Michael Coogan said the Budget offers "a modest potential boost" to the housing and mortgage market in terms of reducing transaction costs for first-time buyers, and potentially improving efficiencies for lenders.

"But as always the devil is in the detail, and the detail is confused. The stamp duty concession in particular looks like a tax loophole waiting to happen," he claimed.

Earlier this month, the CML reported that gross mortgage lending increased to an estimated £9.2 billion in February, up from £8.7 billion the previous month.

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2010-03-25 13:37:13 © Moneyextra.com