House sales rise 15% in July as government slashes transfer tax
There was a 15% increase in house sales in July following the government's decision to cut the property transfer tax, saving home buyers thousands of euros, Nos television reports.
In July 2010, around 10,000 houses changed hands, but last month the figure topped 11,500, Nos said. The broadcaster bases its claims on provisional figures from the real estate association NVM.
The NVM expects a 10% rise in house sales in the third quarter. The government cut the property transfer tax from 6% of the purchase price to 2% in an effort to stimulate house sales.
'It would appear the negative spiral has been broken,' an NVM spokesman said.
New rules
Nevertheless, tougher rules for mortgages also came into effect on August 1, which some say will deter first-time buyers.
From the beginning of this month, most mortgage providers will no longer extend interest-only mortgages and there are new restrictions on maximum loans.
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