Chancellor Announces Stamp Duty Exemption

Chancellor Alistair Darling has announced that properties worth £175,000 and less will be exempt from stamp duty.

The new measure will apply to transactions with an effective date on or after September 3, 2008 and before September 3 2009.

The Chancellor's announcement came as the Government launched a series of measures aimed at helping the ailing housing market.

These measures include a shared equity scheme to help first-time buyers get onto the property ladder, while a mortgage rescue scheme will be launched to offer families struggling with mortgage payments the opportunity to sell their home and rent it back.

The announcement of the measures follows Mr Darling's claim that Britain is facing its worst economic crisis for 60 years.

House prices are reported to be falling at the fastest rate since the early 1990s, while recent figures have showed that the number of repossessions rose to their highest level for 12 years, earlier this year.

Commenting on the measures, Shadow Chancellor George Osbourne described the announcement on stamp duty as "a short-term survival plan for the Prime Minister" and said: "If Labour had set aside money in the good years as we said they should, they could have afforded a more substantial package that would have helped many more families."

Liberal Democrat leader Nick Clegg said: "Gordon Brown has produced a plan to save his job, not help people struggling with the credit crunch.

"If the Prime Minister really wants to help people on low and middle incomes, he could take the simple and obvious step of cutting their taxes, releasing billions of pounds to boost the economy.

"Under Labour, the poorest are feeling the pain of Gordon Brown's legacy as Chancellor, while the richest take advantage of numerous loopholes to avoid paying their fair share.

"The government's response is to try to bribe people into buying houses in a falling market. The last thing vulnerable first time buyers need is Gordon Brown sucking them straight into negative equity with the housing market in free-fall."

See: Partnership Scheme To Aid First-Time Buyers

(KMcA)