Property Articles

During the property sales, the act of the buyer lowering the offer on the day of exchange to force the vendor to sell at a lower price.

The government has axed the stamp duty for properties that cost up to £175,000 for the next 12 months from £125,000.

Among possible measures to boost the housing market could be allowing buyers to postpone the payment of stamp duty.

Someone who is buying a property for £175,000 is going to save £1750 with the new changes.

The move that is designed to kick start the housing market in Britain (especially in England) on the back of the credit crunch is expected to cost the government around £600 million. As more and more first time buyers start actively looking for a property again, the housing market is expected to become more buoyant.

The government also announced:

• Free property loans for first time buyers of new homes in England
• Extended powers for councils and housing associations to help homeowners who can no longer afford mortgage payments pay off their debt and then charge rent.
• Shortened period before Income Support for Mortgage Interest is paid
• Bringing forward plans for more social housing

Some sceptics call these initiatives to be “politically” driven where others dismiss the measures as “too little too late”.

Recently the British media discussed reports that the government was considering some changes to the stamp duty that would essentially allow people delaying their stamp duty payments. But this was causing significant confusion and delays in the housing market.

The British government certainly has not gone as far as the US administration to tackle the effects of the credit crunch. And, regardless of how politically driven these initiatives may be, they will certainly breathe some life back into the slowing British housing market.