Vol. 524 No. 6
250 Mr. Connaughton asked the Minister for the Environment and Local Government if he has satisfied himself that, as a result of the third Bacon report, the stamp duty on second hand houses, having been raised from 3% to 9%, is having a negative effect on construction work in the border, midlands and western region; and if he will make a statement on the matter. [23538/00]
Housing output figures for the first eight months of 2000 show that there has been an overall increase of 10% in housing output in the Border, midlands and western region on the same period last year, and there is no evidence that the new stamp duty rates are having a negative effect on construction work in this region.
A flat stamp duty rate of 9% applies to purchases of new and second-hand residential properties bought by investors, while graduated scales of rates apply for first-time buyers and owner-occupiers purchasing for their own occupation. The changes made in June of this year were in response to evidence of speculative demand in the housing market which was operating to exclude some first-time purchasers. More recently, there is evidence that first-time purchasers are gaining an increasing share of the new house market.
