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Gordon Brown's stamp-duty amnesty for firsttime buyers has been roundly condemned by politicians, bankers and commentators alike. Apparently, it won't make a jot of difference to our faltering economy and it isn't going to halt the property market plummet.
But did anyone ask a first-time buyer what they think? There are plenty around. Just turn to the next seat and you'll likely find a struggling twentysomething who's shelling out half their paltry income on a scabby studio flat. They're London's lost generation, trapped by the credit crunch in low-paid jobs as their rent looks set to soar.
Karen, who works down the corridor from me, is a good example. She calls renting in London "the biggest waste of money ever" and would jump at the chance of buying if prices came within reach. She says saving a few thousand pounds in stamp duty - arguably the second biggest waste of money ever - would be a lifeline if she was scraping together a deposit. At the very least it'll pay for a man with a van and a trip to ikea for some bookshelves.
Despite what critics say, there are cheap properties out there, even in desirable areas such as Highgate. I've looked in estate agents' windows recently and been surprised at the sudden availability of flats under £200,000. Owners desperate to move finally seem to be pricing their homes realistically. Go to somewhere like Peckham and you'll get a decent two-bed maisonette for your money. Good news for the Karens of this world.
Of course, it's not all roses around the door. Anyone who buys now must accept that the value of their new home may go down in the short term. But that's a small price to pay for a lifelong investment. As anyone who's bought in London knows, you take your chances when you can. Waiting for the right moment often means you miss the property boat altogether.
Stamp-duty ceilings create rare pockets of certainty in an ever-moving market - because they focus on prices just below the limit. That's why I bought for £499,950 last year - and why I expect a cluster of properties to be selling for a few quid under the new £175,000 threshold. It might seem like small change in an economic crisis but who's to say that by tugging the property chain at the bottom we won't see a ripple effect further up? And for people like Karen, a stamp duty holiday is the lucky break to a better life.
Reader views (2)
Utterly misses the point. Yes, suspension of stamp duty might save you a couple of thousand pounds. Also, waiting a month will save you a couple of thousand pounds. As house prices fall, getting on that 'boat' the journalist mentions gets easier!
- James, London
What is your property worth now Chazza?
- Ds, Manchester
