Confidence of homebuyers could be rocked by ending stamp duty holiday

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The confidence of potential homebuyers could be affected by the ending of the stamp duty holiday later this month.

The scheme is due to finish on March 24th, and it has proved popular to those who benefitted from a tax break if their property purchase was under the value of £250,000.

Catherine Hearnden, director at MyMortgageDirect, said: “We’ve got people rushing to get their mortgages through before the stamp duty holiday ends and then that has just made the figures look better but afterwards, everything goes off again because people haven’t got the incentive anymore, so it is a bit more psychological as well as just financial.”

The expert added that in reality, stamp duty might not make a difference between buying and selling, however, in people’s heads it does matter.

After March 24th, stamp duty will be charged at a rate of one per cent to first-time buyers if their property purchase is over £125,000.

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3rd March 2012