Homebuyers urge Chancellor to suspend stamp duty 'on all properties'

Around 37% of househunters said they would like Alistair Darling to extend the current stamp duty holiday on homes costing up to £175,000 to include all properties until the housing market has recovered.

A further 18% of people said the threshold at which the tax kicks in should be permanently increased from £175,000 to £250,000 to help stimulate the lower levels of the market, according to FindaProperty.com.

Stamp duty is currently charged at 1% on homes costing between £175,000 and £250,000, rising to 3% on properties worth between £250,000 and £500,000 and 4% on homes costing more than £500,000.

Overall, 58% of people thought some form of stamp duty reform would help them buy a home, while 30% said boosting mortgage availability would be most beneficial.

The majority of people said they would spend any money they saved on stamp duty on things relating to their new home, with 38% saying they would put it towards renovations and decorating, 24% would make additional mortgage repayments and 16% would put it towards moving costs.

A further 9% would use the money to pay off debt, 7% would save it and 2% would use it to fund other purchases such as a car or holiday.

Michael O'Flynn, content editor of FindaProperty.com, said: "Arguably suspending stamp duty could be more effective in stimulating consumer spending than the recent cut in VAT.

"House purchases tend to generate a lot of subsidiary spending on white goods, furnishings, decorating and building work and all of these would generate tax income for the Revenue."