Property delay could see stamp duty hit for buyers
The threshold for zero stamp duty was temporarily lifted to £175,000 in 2008, and will return to £125,000 on 31st December 2009.
For many buyers delaying now could result in the price of a property rising in 2010.
As buying is fraught with hurdles, action is needed now.
Katie Tucker, at mortgage broker Mortgageforce, said: "After the end of year deadline, completions at a purchase price between £125,000 and £250,000 will be liable for stamp duty at one per cent, meaning that a purchase at £175,000, which is exempt now, will add another £1,750 tax to your costs.
"Mortgage lenders are taking two to six weeks to process applications to mortgage offers so if you are thinking of buying between £126,000 and £175,000 before the new year, you need to act now to maximise your chance of getting the mortgage offer in time."
Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said: "A key issue for the market going forward is how it copes with the planned ending of the stamp duty holiday."
He explained this is likely to be less of a problem in London and the south-east, but it could have more of an impact elsewhere.
"The significance of this is that property sales, although picking up, are still well down on what may be considered 'normal'," he said.
"At a time when first time buyers are still struggling to access mortgage finance and, in most cases, reliant on hefty support from parents to take an initial step onto the market, the risk is that the move to end the holiday could arrest the tentative improvement in turnover."
However, John Frost, of estate agents the Frost Partnership based across Buckinghamshire, Berkshire and Middlesex, explained the stamp duty increase is a "bit of a red herring".
"There isn't a great rush leading up to the rise in stamp duty," he said.
"Most people affected are first-time buyers and they are finding it very difficult to find funds. Banks have restricted criteria to those who are ticking every single box."
Ms Tucker advised people to use a well-informed whole of market broker as lenders can process your application the quickest.
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