Recovery 'threatened' by refusal to extend stamp duty holiday
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The government is putting housing market recovery at risk by refusing to extend the stamp duty holiday, investors have warned.
Yesterday the Council of Mortgage Lenders bolstered hopes of recovery by publishing figures showing mortgage lending increased 5 per cent between September and October.
But commentators have warned that such gains may be short lived.
James Moss, from Curzon Investment Property, said: ‘While on the surface it appears Christmas has come early for home buyers, mortgage lending is still skating on very thin ice and is massively down on last year.
‘The government is also once again threatening the recovery by refusing to extend the stamp duty holiday which will kill off the prospects for many first-time buyers wishing to enter the market.’
The government has temporarily removed stamp duty on homes costing between £125,000 and £175,000, but this is due to end on 31 December.
The CML said the rise in mortgage lending was in line with seasonal trends, but the annual comparison should start to improve over the next few months.
