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News Release

London

Jones Lang LaSalle Reaction to Pre-Budget Report - Stamp Duty

Stamp Duty Holiday Over for UK Housing Market


London, 9th December 2009 – In the 2010 Pre-Budget report today, the Chancellor of the Exchequer, Alistair Darling, announced that there would be no further extension to the stamp duty holiday which came into effect in September 2008. This incentive, which was extended by three months to 31st December in April this year, saw the tax free allowance on a residential property purchase rise from £125,000 to £175,000.

James Thomas, Head of Residential Investment and Development at Jones Lang LaSalle, said: “Despite calls from the property industry, it is disappointing that the Chancellor will not be extending the stamp duty holiday into 2010 given the struggles faced by first time buyers in stepping onto the UK housing ladder. This incentive has provided a stimulus to the bottom end of the property market during a time when access to debt has, and continues to be, very restricted and expensive. This in turn has supported other buyers looking to upscale through the market. There are already signs of the recent resurgence in house price growth slowing and our latest Residential Market Forecast anticipates a fall in average UK house prices of circa 7% in 2010 when the general election focuses attention on the continuing threats to the economic recovery; namely, the soft labour market and weaknesses in the household and government balance sheets."