A TAX on buying cheaper properties in Lewisham and Greenwich has been scrapped in a bid to help residents get on the property ladder.

Stamp duty of 1 per cent levied on properties up to £150,000 has been abolished in more than 1,200 disadvantaged wards across England, as identified by the 2000 Index of Deprivation. It means the duty will be abolished in 12 of 26 Lewisham wards and 19 of 36 Greenwich wards, and has been welcomed by both councils.

The announcement was made in the pre-budget report delivered by Chancellor Gordon Brown, last Tuesday.

Lewisham Deputy Mayor Councillor Gavin Moore said: "This exemption scheme will have a significant impact on property sales in many parts of the borough. It should assist prospective homeowners in reducing their purchase costs."

Greenwich Council believes the move will encourage investment and enterprise and will be carrying out research into the local impact of the measures.

Regeneration Minister Lord Falconer, who heralded the measure as great news for businesses and homeowners, said: "It will encourage both to locate and thrive in wards which badly need investment."

But the National Association of Estate Agents chief executive Hugh Dunsmore-Hardy believes the move may stigmatise some properties.

Mr Dunsmore-Hardy explained: "We welcome any stamp duty relief the chancellor wants to give away. However, we are not convinced he has chosen the best route to deal with it.

"And we feel it will create anomalies in the market and may well discriminate properties within those areas not at the bottom of the market."

Other measures introduced by the chancellor include a VAT reduction on conversions to residential use and a tax credit for the costs of cleaning contaminated sites.

Wards affected:

Lewisham:

Evelyn

Grinling Gibbons

Bellingham

Downham

Churchdown

Whitefoot

Marlowe

Grove Park

Rushey Green

Sydenham West

Drake

Hither Green

Greenwich:

St Mary's

Arsenal

Glyndon

Nightingale

Middle Park

Sherard

Eynsham

Ferrier

Hornfair

West

Woolwich Common

Herbert

Burrage

Rectory Field

Lakedale

Kidbrooke

Charlton

Thamesmead Moorings

Plumstead Common

December 6, 2001 9:59