In light of the ongoing credit crunch, it is getting even harder for people especially 1st time buyers to get on that ever so attractive and essential property ladder. The majority of people are finding it hard to borrow the cash for their homes with the 100% mortgage now not as available as it used to be.
House prices in most areas have seen a 15% price drop over the past 6 months and the number of property transactions across the UK compared to this time last year is down 50%. With the property market at its lowest in years and with matters only getting worse, the government have been forced to take action with rumours of the stamp duty being temporarily dropped in a bid to reignite the property market.
Recent reports have revealed that the Chancellor Alistair Darling has not ruled out this method which could see the property market take off again. He said "further measures (will be taken) in the autumn to help people with housing and through them the housing market."
Although this temporary stamp duty holiday will benefit most parties of the property market, action will need to be taken immediately. Speculation over the stamp duty being temporarily dropped will make people reluctant to buy their property until this is confirmed as people could be set to save thousands of pounds by not paying their tax. What the already vulnerable economy does not need is the property market grinding to a halt as they await the verdict of Mr Darling.
The number of new Mortgages taken out will increase if the stamp duty is to rise, with the number of offset mortgages and remortgages also set to increase slightly due to the fact more people will be wanting to take advantage of this suspended stamp duty
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