Michael Creed
Ceist:176 Mr. Creed asked the Minister for Finance if he will reduce the stamp duty on second hand houses in an effort to bridge the affordability gap for first time buyers. [29669/01]
Written Answers. - House Prices.
As the Deputy will be aware, it is not the normal practice for the Minister for Finance to comment in the week before budget day on any taxation proposal. However, I would, nevertheless, like to point out what I have done in this area. In the Finance (No. 2) Act, 2000, I made significant changes to the stamp duty regime on transfers of residential property arising from the recommendations of the third Bacon report into the housing market. The Act introduced a three-tiered stamp duty structure for first-time buyers, owner-occupiers other than first-time buyers and investors. I considerably reduced the stamp duty rates applying to the different bands up to £300,000, 380,921, in respect of first-time purchasers of second-hand residential property. I also increased the exemption from stamp duty from £60,000 – 76,184 – to £150,000 – 190,460 – in the case of such first-time buyers. Also, rates of stamp duty for first-time buyers of second-hand houses at values in excess of £150,000 – 190,460 – and up to £300,000 – 380,921 – are now 25% less than for other owner-occupiers. Limiting these concessions to first-time purchasers maintains their relative advantage in the second-hand market which accounts for two-thirds of first-time purchaser transactions.