It said the increase in the Stamp Duty exemption to £250,000 in yesterday’s budget was welcome but added that limiting this exemption to first-time buyers will restrict the benefits which this could have brought to the property market.
Robert Sinclair, director of AMI, added: “By introducing a new level of the tax at £1m we continue to have an unfair slab tax that will cause a £10,000 jump in the tax for a £1 increase in the price of the property. This smacked of political opportunism.
“With the increase from 1 to 3% at the £250k figure as well, this is a significant cost to be borne and added to loans.”
AMI welcomed the news that regulation of second charge lending will move to the FSA.
He explained: “In time this will simplify advice for the consumer and encourage a more holistic approach from intermediary firms.”