So the big question is when does stamp duty come back into operation!? When will Gordon Brown decide that the housing market is again on its feet. Stamp duty is a tax which is paid when a house is purchased if it at least meets, or exceeds the minimum stamp duty level which is set by the government. This is currently set at a minimum of £175,000. Therefore if you are buying a property that meets or exceeds this amount then you will be liable to pay stamp duty.

If you buy a house between £175,000 - £250,000 then the rate is currently 1% of the total offer accepted on the house. The stamp duty rates rise as the house prices go up. For a house between £250,000 - £500,000 the stamp duty is 3% of purchase price; and for a house exceeding £500,000 the current rate is 4%.

From the 1st January 2010, Stamp Duty of 1% will apply to any house purchases above £125,000. 1% of £125,000 is £1,250, which for many buyers adds an extra cost pressure to buying the property. Therefore we could expect to see lots of house prices being sold towards the end of 2009 and perhaps many more around the christmas period than what we have seen in recent years. If you are thinking of selling your house quickly then this might be a good time.

It is well worth noting that certain Estate Agents of late appear to increasing the price in which they are valueing houses at. Some are trying to take advantage of the current stamp duty rules, whilst others are trying to pretend that the market is back up and running. By doing this they leave the buyers and potential buyers worried that house prices will soar back up again, and therefore force them in to action! Don't fall for it.