Stamp duty break would ‘kickstart the market’
15th November 2017
More than 1 in 5 (22%) recent homebuyers would consider moving if chancellor Philip Hammond introduces a stamp duty holiday in his first Autumn Budget next week.
Retail bank Aldermore asked 1,071 people who had purchased a home in the last 4 years about their plans to move again if a temporary break in stamp duty comes into force.
The measure would incentivise 30% of first-time buyers to accelerate their plans to get on the property ladder, while 15% of those who moved in the last 4 years would consider relocating.
Stamp duty land tax is an extra cost for people trying to buy their first home, with concerns also being raised over the tax keeping homeowners in houses that are too large for their needs.
It is charged at various rates on residential transactions above £125,000 in England, Wales and Northern Ireland.
Land transaction tax will replace stamp duty land tax in Wales from April 2018 and different rates will apply.
Charles McDowell, commercial director at Aldermore, said:
"With the property market at risk of coming to a standstill, we would welcome any plans, temporary or otherwise, that reduce stamp duty.
"Our findings show it would be a decision that could kickstart market activity.
"A reduction in stamp duty would be particularly beneficial for first-time buyers who are struggling with an overly complex and costly system."
Contact us to discuss your stamp duty liability.