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Rics proposals would benefit nearly everyone

Thursday 3rd July 2008

The Royal Institution of Chartered Surveyors (Rics) has published a set of proposals which it claims could benefit 99 per cent of British homebuyers.

Relating to stamp duty, the suggestions represent an overhaul of the current system which Rics states could prove beneficial to consumers at all levels of the housing ladder.

Under the proposed scheme, stamp duty land tax would be reduced on all properties valued at less than £1 million - accounting for 99 per cent of UK housing stock, Rics observes.

On a property valued at £250,000, meanwhile, stamp duty would be reduced from £7,500 to £2,500.

This could prove useful in allowing first-time buyers to get a foothold on the housing ladder in more expensive areas, the industry body contends.

Rics proposals hinge on the introduction of a two-tier system, with the first £150,000 of any house purchase exempt from stamp duty land tax.

Beyond this, a 2.5 per cent rate of tax would be charged on the next £100,000, rising to five per cent on properties above £250,000.

Gillian Charlesworth, director of external affairs at Rics, comments: "After having mortgages pulled from beneath their feet from lenders facing the full brunt of the credit crunch, consumers are looking to the government for help."

Should such help not be immediately forthcoming, she adds that a stamp duty holiday may be an alternative means of easing pressure on first-time buyers.

The suggestions follow claims from Rics that the governments planned eco-towns, part of its commitment to providing more affordable housing in the coming years, "will not be real workable and sustainable mixed-use developments".©

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