Housing market 'on knees' despite tax break

Date: 22nd September 2008

Property prices have continued to decline despite the government's so-called 'stamp duty holiday', research has shown.

In the five weeks up to September 13th, housing prices dropped by about one per cent to an average of £227,438, according to Rightmove.

Statistics show a moderate improvement over the previous three months, with the annual rate of decline also subsiding to 2.3 per cent from 4.8 per cent.

Miles Shipside, commercial director of Rightmove, said: "The housing market is on its knees and will remain so until financial institutions address the disastrous state of the mortgage funding markets.

"We are now seeing the lowest level of new sellers for years."

Chancellor Alistair Darling announced the one year stamp duty reprieve on September 2nd, with homes valued between £125,000 and £175,000 being exempt from the charge.

Critics argued that the rate reprieve ignored property in London, which still remains largely out of reach for first-time buyers.

HM Revenue and Customs recently announced that the final deadline for self assessment tax returns is January 31st next year.