Cowen facing further calls for stamp-duty reform

The Institute of Professional Auctioneers and Valuers (IPAV) has today urged Minister for Finance Brian Cowen to change his mind about reforming the stamp-duty regime.

Mr Cowen has already ruled out any changes in next month's budget, saying it is not his job to interfere in the property market.

However, in this pre-budget submission, the IPAV is calling for stamp duty to be abolished entirely for all first-time buyers in order to help them get a foot on the property ladder.

It is also seeking a doubling in the amount of mortgage interest relief for first-time buyers.

Elsewhere, the IPAV is urging Mr Cowen to reduce the number of stamp duty categories, as well as the rates at which the tax is imposed.

It also says duties should only be paid on the amount of a house price which exceeds the threshold rather than on the entire cost of the house.

IPAV president Sean Mason says the current regime is adding massive amounts to the cost of buying a house and is taxing buyers at a much higher rate than in the past.

He says a modest family home in Dublin would currently cost around €700,000, with stamp duty of 9% of top of this, when 10 years ago you could buy the same house for €10,000, with a stamp duty of just 2%.