When the stamp duty holiday comes to an end, certain regions are likely to suffer, it has been suggested.
According to the Royal Institution of Chartered Surveyors (Rics), market activity will be affected in some regions more than others, with the West Midlands, east Midlands, Wales and Scotland preparing for the worst.
Currently, the stamp duty holiday applies to properties costing up to £175,000, although this is set to be lowered to £125,000 at the end of this year.
"At the time of its introduction, we did question how great an impact this policy would have," noted Simon Rubinsohn, chief economist at Rics.
"Judging by the fact that only surveyors in certain parts of the country are particularly concerned about the ending of the holiday, it could be said that some areas of the UK hardly even noticed the change."
Surveyors in the south-east of England and London are said to believe that the changes to stamp duty will not impact the market, despite average house prices in these areas exceeding the £175,000 threshold.
The September house price index from the Land Registry shows that the average house price in Greater London stood at £314,954.
Surveyors in the north of England were also said to have been passive to the changes in stamp duty, as Rics revealed the average property falls below the threshold at £116,051.
Mr Rubinsohn indicated that first-time buyers in particular would be affected by the end of the stamp duty holiday, which could see them struggling to get a mortgage.
Changes to stamp duty were introduced on September 3rd 2008 in a bid to reinvigorate the housing market. They will stay in place until December 31st.
A one per cent rate of stamp duty is payable on properties priced between £175,001 and £250,000, which then increases to three per cent for properties valued between £250,001 and £500,000. |
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