Mortgage News Mortgage Lending Falls 57 Per Cent Despite Stamp Duty Relief 2493
Written by Editorial Team
Mortgage lending falls 57% despite stamp duty relief
12 November 2008 / by Rebecca Sargent
Drastic stamp duty measures that were introduced two months ago as the Government attempted to boost the mortgage market have failed to stimulate the market, new figures from the Council of Mortgage Lenders (CML) have revealed.
The stamp duty relief was aimed at aiding struggling potential buyers by increasing the stamp duty threshold from £125,000 to £175,000 for one year. It was hoped that this would help first time buyers and those who need the help most.
However, since its introduction in early September, the number of new home loans has fallen by 15 per cent between August and September. The total number of mortgages in September 2008 was 34,900, 57 per cent less than the 80,400 there were in September 2007.
And, the CML figures show that despite a dramatic fall in house prices, first time buyers continue to struggle. In fact, the number of first time buyer mortgages is down 52 per cent between September 2007 and September 2008.