Michael Finneran (Roscommon-South Leitrim, Fianna Fail)

I understand the universal social charge was dealt with earlier. Substantial reform has taken place in the budget and the Finance Bill on stamp duty. Some of the major changes introduced will be of extraordinary benefit compared with the previous regime. Properties valued up to €1 million are now liable to stamp duty at the rate of 1%. Where the value of the property is in excess of €1 million, the rate increases to 2%. Under the previous provision a rate of 7% applied on property values that exceeded €125,000 and the rate on properties valued at in excess of €1 million was 9%. There is a substantial gain for people under the new stamp duty regime. As Minister of State with responsibility for housing I expect the change to have an important stimulus effect on the property market by removing uncertainty. It may have a knock-on effect on the level of activity in the market. I am not trying to push people into the market but according to figures I saw yesterday, it seems stability has come to the market. I accept the number of sales that have taken place is limited. I do not think we should embrace the fact at this time but it does give an indicator, albeit at the lower level.

Stamp duty on property valued at €200,000 was €5,250 under the previous regime. That has now fallen to €2,000, representing a saving of €3,250 or 62%. That is a substantial saving under the new regime. Similarly, stamp duty on a house valued at €300,000 is now charged at €3,000 instead of €12,250. That is a saving of €9,250 or 76%. The reform of stamp duty will have a positive benefit for people in the property market or those who wish to enter the property market.