NAEA: Government must do more

Wednesday, 03, Sep 2008 08:38

The National Association of Estate Agents (NAEA) has criticised the government, arguing it must do more to alleviate suffering in the UK property market.

Following the announcement the stamp duty threshold will scrapped for all properties worth £175,000 and under for the next 12 months, the organisation's chief executive Peter Bolton King has urged for further assistance.

"We are pleased a decision was made by the government today, as the indecision over the last month has had a major effect on consumer confidence," commented Mr King.

"Today's announcement is a step in the right direction however; I am still concerned as I do not believe the decisions made will help the entire market."

The NAEA argues the new £175,000 threshold will do little to assist those in London and the south-east, where prices are highest - especially given the high price of property for first-time buyers.

The average price paid by first time buyers across the whole of the UK was £159,606 in June, according to statistics from the Department for Communities and Local Government (CLG).

The government stamp duty announcement is part of a package of measures to restore confidence in the market, including offering interest free five year loans, of up to 30 per cent of the property's value, to first-time buyers when buying a new home from developers.

Only buyers who earn less than £60,000 will qualify.

"However, again this is only helpful for first-time buyers in the short-term and it is concerning as this could have a negative effect on the second hand home market," added Mr King.

"Additionally, it is a shame that the proposal does not cover the whole market."

Chris O'Toole