Bosses at a North Wales estate agency believe wider support for the economy and keeping people in jobs will be the best boost for the housing market - rather than extending Land Transaction Tax relief.
Welsh Government increased the threshold for when you start playing Land Transaction Tax(LTT) - the Welsh version of stamp duty - on a house purchase from £180,000 to £250,000 last July to help stimulate the housing market.
The temporary measure is due to end in April with some campaigners calling for it to be extended - including Aberconwy MS Janet Finch-Saunders, who called it a tax “on aspiration and opportunity”.
But Melfyn Williams and Tim Goodwin at Williams and Goodwin estate agents said they believe wider economic support measures that kept Welsh workers in jobs would be the best way to ensure the housing markets remains buoyant.
They said: “The Land Transaction Tax (LTT) concession in place is currently due to end on 31st March 2021.
“Whilst campaigners are calling for this to be extended or at least have a softer ending rather than the proposed ‘cliff edge’ stop date, the impact here in Wales is expected to be less than across the border.
“In Wales the concession was on main residence property only, up to £250,000, while across the border buyers on property up to £500,000 have been benefiting from the concession. The pressure is now on for those to purchase before the deadline.
“Once this tinkering with the market has ended there may be a small pause in activity however we do believe that all else being equal the traditional spring market will continue as for whatever reason people we will still need to find a home and others will have to move.
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“What is likely to have the greatest impact in the coming months in the property market will be employment and any redundancies which may appear as furlough schemes and other business support packages are finished.
“For the wider economy, it may be better for the furlough scheme to be extended rather than LTT (stamp duty). This in our view would benefit more people and the whole economy.”
They added: “The fundamentals of the economy remain very sound and it is this, more than any other influence, that supports the property market.
“That stamp duty concession was helpful, but it would not have prompted people to move unless they actually had a strong desire to do so based on market confidence and their personal lifestyle preferences.”
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The House of Commons has confirmed there will be a debate about stamp duty after a petition on the 海角视频 Government’s website for the current stamp duty holiday until September 2021 secured enough signatures for it to be considered for debate in Parliament.
If the 海角视频 Government did extend the stamp duty holiday in England, then Welsh Government would receive a Barnett consequential from this.
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The 海角视频 Government has previously said it did not intend to extend this “temporary” measure.
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