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News Release

London

Stamp Duty Tax Free Threshold Doubles to £250,000

Jones Lang LaSalle Reaction to the 2010 Budget


London, 24th March 2010 - In the 2010 Budget announced today, the Chancellor of the Exchequer, Alistair Darling, doubled the tax free threshold for stamp duty on residential properties to £250,000 for first time buyers until the end of 2011. This incentive, aimed at boosting the struggling UK housing market, comes after the temporary extension last year from £125,000 to £175,000 which ended on 31st December 2009. The stamp duty charge for property purchases over £1 million will increase from 4% to 5%. The Chancellor explained this change is aimed at helping fund the support given to first time buyers.

James Thomas, Head of Residential Investment and Development at Jones Lang LaSalle, said:

'“The extension to the stamp duty threshold is positive news for the UK housing market. This incentive will provide a much needed stimulus to the market at a time when first time buyers are struggling to raise deposit monies. The underlying economic conditions, in conjunction with a predicted rise in unemployment, is likely to dampen price growth and the concern of rising interest rates later in the year will continue to weigh on the market. The extension to the stamp duty threshold should motivate and support other buyers looking to upscale through the market. However, the 50% tax rate on high earners which comes into force next month and the one off bonus tax windfall is likely to feed through and impact the prime central London residential market, as is the increase in stamp to duty to 5% on properties purchased over £1 million.”