Autumn Statement 2011: SDLT Industry backlash By Sarah Davidson


The mortgage industry lashed out at the government’s fail- ure to extend the Stamp Duty holiday for first-time buyers in last month’s Autumn State- ment. Chancellor George os-


borne said the scheme had failed and would end as planned on 24 March 2012. The Autumn Statement


said: “The government is instead prioritising more effective measures which provide better value for mon- ey as set out in its housing strategy.” The housing strategy an-


nounced last month includes a government and builder- backed mortgage indemnity scheme to help up to 100,000


The forces of good, with apologies to George Lucas


by Robert Sinclair director AMI


After three years of talking to politicians and civil ser- vants, not to mention regu- lators of various types, we at last have recognition of the importance of the hous- ing market to the broader economy. We have action to underpin activity and confidence through a range of initiatives that recognise


people buy homes with 5% deposits. The government has also


said it will provide a £400m scheme to kick-start stalled construction projects in eng- land and that social tenants could expect up to a 50% discount when buying their homes. Peter rollings, chief execu-


tive of estate agent Marsh & Parsons, said: “The failure to extend the holiday for first- time buyers will undermine the government’s own at- tempts to kick-start the first- time buyer market across the country.” rollings said while the new


mortgage indemnity scheme may improve the accessibility of mortgage finance to many credit-worthy borrowers,


the problems of lenders in coping with the capital and liquidity controls forced on them to prevent another market failure. In providing a range


of support, this will help confidence amongst buyers, so assisting sellers and mak- ing it easier for builders to see more developments as profitable to commence. In turn it is to be hoped that lenders are able to provide funding through more flexible views on the capital required to support their loans. It may be too little, but action must be appreci- ated. The broader uK economy


continues to bump along the bottom. The pressures of the long euro winter are driving more markets towards hibernation. The


first-time buyers will need to save for longer to pay the stamp duty bill as they move. “If the government aimed


to stimulate the national first- time buyer market in spite of the wider economic condi- tions, combining the exten- sion of the stamp duty holi- day with the new indemnity scheme would have boosted the chances of a significant increase in first-time buyer activity. “But the Chancellor has


also missed an open goal by failing to address the outdat- ed and iniquitous stamp duty tax system. In effect, osborne is giving with one hand, and taking away with the other,” he added. And Council of Mortgage Lenders director general Paul


slowing in emerging mar- kets may be something to do with large parts of the historically rural agri- cultural populations not being entirely convinced of the benefits of this new technological era. There are parallels in history. It may take time to “enfranchise all with its benefits”. Inflation continues to


do its work in realigning the economy. I remain convinced that unemploy- ment is painful but within expectations at this point in the cycle, as are the remark- ably low levels of arrears and repossessions. GDP in real terms is struggling and it will be many years till we regain the levels of 2006. This will be another lost decade, with a generation of children struggling to add


Smee said: “It is disappoint- ing to see the government withdrawing the stamp duty concession that currently benefits first-time buyers. “While the concession may


not have stimulated addition- al demand, it was a significant help to home-owners enter- ing the market and its remov- al runs counter to the themes of the new housing strategy. “It is likely that we will see a


bunching of eligible first-time buyer transactions early next March to beat the expiry date on the concession.” Charles Haresnape, man-


aging director of Aldermore residential Mortgages, was also disappointed. He said: “First-time buy-


ers need as much help as possible.”


their mark to our world. even with the liquidity be- ing added by central banks, we need more to avoid real long term damage. The move to new regula-


tion led by europe contin- ues but with new bodies being established in the uK via a new Financial Ser- vices Bill being introduced to Parliament, we need to engage. As the first half of 2012 will establish the shape, style and approach of how we will be regulated for the next decade, we must ensure we have the right objectives supported by strong methods of account- ability to provide balance. We need to ensure that


these new regulators work to prevent bad things hap- pening in markets and to consumers.


MorTGAGe INTroDuCer DECEMBER 2011 5


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