Warning on stamp duty

The government is unlikely to change the way it levies stamp duty, a mortgage expert has warned.

Spokesman for brokerage John Charcol, Ray Boulger, said it would be better for the government to raise the threshold at which the levy was is charged to £250,000 and start it at two per cent.

At present a one per cent figure is payable on homes of £175,000 or more, a level that was raised from £125,000 a year ago by the chancellor Alistair Darling.

Mr Charcol said the current system is “unfair” and said his appeal for change is “a hope not an expectation”.

Such a consideration may concern those thinking of taking out a mortgage.

The £175,000 stamp duty floor was instigated a year ago by the chancellor and was meant to last for exactly a year.

However, in his Budget speech in April Mr Darling announced the temporary rate would last until New Year 2010.

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