Stamp Duty Price Cuts?

The National Association of Estate Agents (NAEA) has called on Chancellor of the Exchequer Alistair Darling to cut stamp duty in next month's Budget.

It is hoped revising the threshold at which stamp duty is paid will reduce affordability concerns for first-time buyers - many of whom presently struggle to obtain property.

"The government needs to be aware with inflation rising consumers need a helping hand. We would like to see a scale of stamp duty that reflects the house price inflation in recent years," said NAEA president, Stewart Lilly.

The NAEA advocates the following system of stamp duty thresholds:

• Up to £200,000 - 0 per cent
• £200,001 to £300,000 - 1 per cent
• £300,001 to £450,000 - 2 per cent
• £450,001 to £1million - 3 per cent
• £1million and above - 4 per cent
• £2 million and above - 4.5 per cent

The NAEA is also calling for the government to develop its green taxation system - by introducing VAT free eco-products and lowering tax on building conversions to match new-build status.

It is hoped the moves would promote energy efficiency and sustainability in the home, a change the NAEA feels would play an important role in encouraging the regeneration of old buildings and reduce the UK's carbon footprint.

"We would like to see green policies made more accessible to the average consumer," continued Mr Lilly.

"By implementing simple measures such as introducing VAT free/lower-tax green policies it can only encourage people to introduce more energy efficiency into their existing homes and renovate and regenerate older properties - rather than measures with big words and little substance like home information packs (Hips) and carbon-zero homes, we believe this government could see real results."

Finally, the NAEA is also demanding the government incorporate greater emphasis and further planning reforms to ensure sustainable communities are built and to encourage the spread of affordable housing across the UK.

"We would like to encourage more balance in communities - especially rural communities - that have for some time lacked the proper investment to get the right mix of properties in the right place and at the right price with the services to match," concluded Mr Lilly.