PETERSFIELD MP Michael Mates has criticised the Government for using its own policies to make the housing market situation worse. The MP for East Hampshire launched his attack after the latest figures were released relating to stamp duty on house sales, which he described as yet another "stealth tax". Mr Mates said: "Not only did Gordon Brown introduce higher rates of stamp duty, he also failed to increase the stamp duty thresholds for the three per cent and four per cent rates in line with the rise in prices, resulting in many more people having to pay stamp duty. "East Hampshire has been particularly hard hit by this stealth tax rise. The average detached home across the country now has to pay three per cent stamp duty, and has seen its stamp duty bill rise by almost £9,000 under Labour. "But here in East Hampshire that increase is more than £11,000 and the consequence of not increasing the thresholds is that many more East Hampshire families have to pay this tax than would have done so in the past. "Almost three-quarters of family homes in England are now caught by higher rate stamp duty compared to none when Labour came to power." Mr Mates added: "The average detached house price in East Hampshire has risen from £143,949 in 1997 to £417,668 in 2007, which has meant an increase in stamp duty from £1,439 to a whopping £12,530." Those who elect to extend their homes rather than move are also feeling the icy finger of the tax collector, and Mr Mates warned: "Many local councils have started to charge a £1,000 'bedroom tax' for planning permission for additional rooms." His answer to the problem was for Labour to draw a halt. He said: "I have called for the Government to do more to help homeowners who need to move in this difficult market. They should immediately scrap the red tape associated with home information packs and cut stamp duty for first-time buyers."
