Stamp duty changes 'have not gone far enough'

Ernst & Young have welcomed the changes in Stamp Duty for residential properties, but say they have not gone far enough.

Ernst & Young's Fred Kerr said: "The rate of Stamp Duty is too high even with these changes.

"The Minister has still not addressed the issue of families trading up from their apartments to houses or retired couples wanting to trade down.

"I cannot see how these changes will have any major impact on the housing market which appears to be on a downwards trend. More radical and forward thinking changes are required rather than tinkering with an antiquated tax.

"In a market where property prices have fallen 5% in the 12 months to October, and in some cases by as much as 25% per anecdotal evidence, the minor reduction in Stamp Duty is unlikely to provide a stimulus to the housing market. This is particularly so on the lower price end of the market where the reductions are quite minimal.

Mr Kerr said the simplification of the system is to be welcomed, and the new systems is more equitable, the actual reductions are "quite minimal".

"On a house costing €350k, the reduction in Stamp duty is €5,250. The savings are more dramatic on dearer houses. For example on a house costing €1.5m the saving is €28,750. On a positive note, the certainty is to be welcome and speculation about Stamp Duty changes is now firmly at an end."