The Christmas period is usually a busy period all round; the shops are overflowing with present hunters and restaurants and bars are filled with people full of Christmas cheer. But this year we could see a surge of eager property hunters looking to take advantage of the stamp duty holiday that is due to expire at the turn of the New Year.

It was around this time last year that the government announced the stamp duty holiday to revive the UK property market. They introduced a period where one would not have to pay stamp duty on properties between £125k and £175k for a limited period only. Time is running on this offer and expires at midnight on New Year’s Eve. This may lead one to believe that there might actually be a surge of people wanting to take advantage of the offer.

Interestingly, in recent months there has been indications that property prices are on the up. The Nationwide Housing Index has reported rises in 5 out of the last 6 months and predicts that we will end 2009 with a 0.5% rise in house prices. Certainly, the stamp duty holiday will add to the lure.

One word of caution, like any investment buying property is all about timing so a hasty decision now to save on the stamp duty (which is likely to be anywhere from £1,250 to £1,750) could end up costing you dearly if prices decline further. It is therefore vital that you weigh up the pros and cons of the situation before committing to enter the market.