Docklands property boosted by duty freeze

By Rob Virtue on September 8, 2008 11:39 AM |

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THE property market in E14 could be in for a boost after the decision by the Government to freeze stamp duty on some properties.

This week it was announced the tax for properties below £175,000 would be suspended for a year to help the housing market recover. Previously only properties worth less than £125,000 were exempt.

Francesca Tizzard, manager at Rubicon, in Westferry Road, said that while the decision will have a minimal effect in Docklands due to high prices in the area, it has dealt with some uncertainty in the market.

She said: “It will certainly improve things for first time buyers but in E14 there’s not usually any property under £175,000. It is perhaps better for those living outside London.
“However, it is good the Government has now made its decision as it’s got rid of that uncertainty. We have found this week that people are making offers again and these are good signs the market is picking up.”

Daniel Betts, sales manager at Dockside Properties, said he sees the suspended duty as hopeful for the market as a whole.

He said: “Although it is only at £175,000, the movement at first time buyers level will see a knock-on effect for the next level up.”

Although those buying properties for less than £175,000 are exempt from stamp duty it is still at one per cent for properties up to £250,000, three per cent for properties up to £500,000 and an extra one per cent on properties above that.

Property experts Mouseprice.com said the amount of properties worth less than £175,000 is 48.6 per cent in comparison with the 25 per cent worth less than £125,000.

The decision means an extra 23.9 per cent of the total housing stock will be exempt from the tax for a year.

Mouseprice.com allows people to check on property prices and lets them see if a property is no longer subject to stamp duty.

Tell us what you think about the cut in stamp duty. Will it have the desired effect?