Will the end of the Stamp Duty Holiday Stifle a Promising Start to 2012?

LONDON, March 19, 2012 /PRNewswire/ --

The Rightmove House Price Index for March 2012 is released today and reveals that the average asking price for a property in the UK increased by 1.6%. The average asking price for a UK property now stands at £236,939.

Early indicators suggest that property market activity in 2012 is on course to be more robust than in 2011. New sellers' average asking prices are up by 1.6% this month and are seeing their strongest start to the year since 2004, fuelled by the continuing shortage of suitable stock and a jump of 16% in search activity on Rightmove during the first quarter. While these statistics indicate increasing confidence in some sectors of the market, the recovery remains patchy and, because transaction volumes remain low, the market is very sensitive to external influence. The end of the first-time buyer stamp duty holiday on the 24^th March is a potential blow to the all-important lower end of the housing market, with some tentative signs of 'housing market life' this raises the question: will the end of this tax break will stifle a promising start to 2012?

Miles Shipside, director of Rightmove, comments: "For a first-time buyer it's already hard enough to raise the necessary deposit and now, as well as potentially losing between £1,250 and £2,500 in stamp duty exemption, asking prices for their target property types have increased by over £5,000 in the last year as well. The stamp duty holiday was designed to promote activity in the moribund housing market, helping first-time buyers to get onto the housing ladder, and as a consequence releasing others to climb up the rungs too. With some promising indicators of activity so far in 2012, there are finally some signs that this is playing an important role. The question is: can the Chancellor afford to spring a surprise and extend the stamp duty exemption? If not, what are the potential costs of leaving the UK re-sale property market without any incentives?"

For further statistics and to download the Rightmove March 2011 House Price Index please visit - http://www.rightmove.co.uk/news/house-price-index or search for local house prices at http://www.rightmove.co.uk/house-prices.html

Rightmove Press Office +44(0)207-087-0605