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Darling ignores calls to help first-time buyers
The Chancellor, Alistair Darling is accused of using the recovery of recent house prices as an excuse to help the first-time buyers and not support the housing market. While he has not announced an extension to the stamp duty holiday on properties worth less than £175,000, but tries to earn extra revenue from a forecast revival in the housing market. As a result, the tax will once again be levied on all homes worth more than £125,000 from January 1.
In contrary to a promise made by the Chancellor in 2007 to increase the threshold at which inheritance tax is due in line with inflation, he would instead freeze the rate at a current level of £325,000 for an individual and £650,000 for couples. The individual level had been due to rise to £350,000 for individuals and £700,000 for couples in April next year. Between 2010 and 2013 it has been estimated that the measure will produce £440 million in revenue for the Government.
Even the wealthy homeowners were hit, for homes worth more than £1 million, either do not pay stamp duty or pay a reduced rate, and will see details of the complicated vehicles they have been using passed to the Revenue. Those who have transferred property into trusts to minimise inheritance tax will no longer be exempt.
Since September, searches on the site for mortgages on properties under £175,000 have increased by 9%, which means that currently over half of all mortgages searches are buyers looking to purchase properties under £175,000. The end to the stamp duty holiday will have a severe impact on the market.
Therefore the government should reconsider its decision not to extend the stamp duty holiday if it is serious about helping the first time buyers, or rather make the first time buyers permanently exempt.
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it comes to household insurance, there are two kinds of
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* Buildings insurance covers the structure of the home
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