Irish Government cuts stamp duty for first time buyers

Ireland is likely to abolish or reduce stamp duty on the sale of second-hand homes to help first time buyers, and to punish land speculators. The distortions in the economy caused by rising house prices are a major concern to the governments of both Ireland and the UK, but Ireland is taking more direct measures than the British. At the Cabinet meeting in Dublin today, the Government is expected to put in place measures to help first time buyers by extending the stamp duty reduction on new housing to second hand housing. It is possible that duty on both kinds of housing may be abolished. Other measures aim to stop speculation in serviced land (land with planning permission and provision for roads and utilities). If the land is not developed expediently it may be compulsorily purchased at agricultural land prices. To discourage people from buying property while prices are so high stamp duty could be doubled on third and subsequent properties.   (Ireland, 13/06/00)