Spare first-time buyers the stamp-duty burden
The Conservatives have proposed that nine out of ten first time buyers should not have to pay stamp duty.
Under Labour, Stamp Duty has become a major barrier for those looking to get onto the housing ladder.
More people are paying it: research by the Halifax bank shows that homebuyers in nearly a third of local authorities now face a Stamp Duty bill equivalent to a fifth of average local full-time earnings. Five years ago, this was the case in only 5% of local authorities.
The cost has risen: in 1997, the average homebuyer did not pay any Stamp Duty on their first home; but today’s first-time buyers have to pay an average of £1,600 to the Treasury. This represents a huge outlay at a time when cash is already tight.
We believe in encouraging homeownership, not putting obstacles in people’s way. And that is why the next Conservative Government will abolish Stamp Duty for 9 out of 10 first-time buyers.
Anyone who buys their first home for under £250,000 will pay no Stamp Duty at all. This will take 200,000 people a year out of Stamp Duty altogether.
George Osborne, Shadow Chancellor said of the Conservative proposals:
"Our message to the family working long hours, saving every spare pound to afford their first home is this: your dream is our dream too. Your aspiration is our aspiration. We will get you out of tax and into your home. And by joining us, you can help make it happen."
STOP PRESS - Labour tries to copy Tory plans again
Typically, shortly after I had written this piece, the Labour government tried to steal Tory clothes by scapping stamp duty on house purchases below £175,000 for one year. But as with the way Labour did a half-hearted copy of our plans on inheritance tax which did not go far enough, this latest Labour attempt to copy Tory plans does not go far enough either.
City analysts said the plans — announced by Chancellor Alistair Darling — are "too little, too late".
The National Federation of Builders called it “little more than a political sticking-plaster”.
And Shadow Chancellor George Osborne called it “a short term survival plan for the Prime Minister, not a long-term recovery plan for the economy.”
There is also a question mark over where £600million needed to fund the scheme will be found.
Under Labour, Stamp Duty has become a major barrier for those looking to get onto the housing ladder.
More people are paying it: research by the Halifax bank shows that homebuyers in nearly a third of local authorities now face a Stamp Duty bill equivalent to a fifth of average local full-time earnings. Five years ago, this was the case in only 5% of local authorities.
The cost has risen: in 1997, the average homebuyer did not pay any Stamp Duty on their first home; but today’s first-time buyers have to pay an average of £1,600 to the Treasury. This represents a huge outlay at a time when cash is already tight.
We believe in encouraging homeownership, not putting obstacles in people’s way. And that is why the next Conservative Government will abolish Stamp Duty for 9 out of 10 first-time buyers.
Anyone who buys their first home for under £250,000 will pay no Stamp Duty at all. This will take 200,000 people a year out of Stamp Duty altogether.
George Osborne, Shadow Chancellor said of the Conservative proposals:
"Our message to the family working long hours, saving every spare pound to afford their first home is this: your dream is our dream too. Your aspiration is our aspiration. We will get you out of tax and into your home. And by joining us, you can help make it happen."
STOP PRESS - Labour tries to copy Tory plans again
Typically, shortly after I had written this piece, the Labour government tried to steal Tory clothes by scapping stamp duty on house purchases below £175,000 for one year. But as with the way Labour did a half-hearted copy of our plans on inheritance tax which did not go far enough, this latest Labour attempt to copy Tory plans does not go far enough either.
City analysts said the plans — announced by Chancellor Alistair Darling — are "too little, too late".
The National Federation of Builders called it “little more than a political sticking-plaster”.
And Shadow Chancellor George Osborne called it “a short term survival plan for the Prime Minister, not a long-term recovery plan for the economy.”
There is also a question mark over where £600million needed to fund the scheme will be found.
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