Comments on today’s budget

24 March 2010

Robert Bartlett, CEO comments on today’s budget:

“A huge proportion of hard working middle England, people who have saved all their lives to own their own homes, will be penalised by the failure of the government to raise the inheritance tax threshold.  The average three bedroom plus detached house in most parts of the country would be valued at over £325,000 and thus subject to inheritance tax. 

“I welcome the elimination of stamp duty on properties valued under £250,000 which removes one obstacle to increasing buyer interest but the Chancellor’s plan does not address the other issues blocking first time buyers from home ownership.

“The lack of mortgage finance at all levels of potential home ownership shows little sign of easing, meaning the dreams of thousands of potential homeowners remain just that.

“Increasing stamp duty on homes over £1mn will have a dampening effect across the entire range of the housing market.  Coupled with previous government initiatives such as HIPs, this will inhibit transaction volumes at a time when the economy most needs movement in the housing market.  Increasing home sales boosts the overall economy as new homeowners buy to decorate and furnish their properties.

“In our view, the measures the Chancellor has taken today with specific regard to the housing market will do nothing to assist the country out of its current economic crisis.”

Giles Cook, director, Chesterton Humberts’ Chelsea office comments:

“London families seem to be taking the brunt of the budget pain.  Increasing stamp duty on properties over £1mn penalises those struggling to establish a family home here, where the average house price is over £330,000. 

“Freezing the inheritance tax threshold at £325,000 for the next four years penalises most middle class families in the capital, who have worked hard to own their own homes and who expected to be able to pass the benefits of their efforts on to their families.”