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Nearly a third of homebuyers 'benefit from rise in stamp duty threshold'

Nearly a third of homebuyers 'benefit from rise in stamp duty threshold'
Many homebuyers in the UK have benefited from the increase in the residential stamp duty threshold implemented by the government.

This is according to Halifax, which suggested that nearly one in three such people were exempt from paying the duty over the ten months between September 2008 and June 2009 due to the changes.

In order to stimulate the flagging property market, the government temporarily raised the lowest stamp duty threshold from £125,000 to £175,000 a year ago.

Since then, a total of 112,000 people have benefited from the changes, Halifax suggests.

Housing economist at the firm Martin Ellis said: "The temporary raising of the lowest stamp duty tax threshold has removed a significant number of homebuyers from the tax net. This has been a boost to many people in a very difficult economic climate."

Recently, Halifax suggested that whereas urban house prices have fallen by an average of 18 per cent over the last year, properties in rural areas have seen less significant falls of around 13 per cent.