Should The Rate Of Stamp Duty Be Reduced?

The Government’s Stamp Duty, specifically the £250,000 threshold has come under fire from the industry as new research emerges.

The Government’s Stamp Duty, specifically the £250,000 threshold has come under fire from the industry as new research emerges.

According to the research, commissioned from Cass Business School by the London Central Portfolio, there are 93% more transactions of homes priced between £240,000 and £250,000 than between £250,000 and £260,000.

The research also stated that 13,866 vendors were forced to sell at significant discounts, some of which were as high as £10,000. Not only that, but 73% of home owners have properties between £125,000 and £250,000 (the points at which Stamp Duty kicks in at 1% and 3% respectively – a threshold that has not been changed since 2000 when the average house price was £79,242).

In addition, the report also raised some alarming statistics:

  • 93% more transactions occur just beneath the 3% Stamp Duty threshold than above it
  • 9,721 homeowners a year unable to sell because of threshold
  • They may have to wait 2.5 years to get a fair price for their property
  • Additional 13,866 forced to sell their property at up to a £10,000 price discount
  • At least 50,000 households will face a £7,500 Stamp Duty tax bill in the next five years
  • 73% of market sit in precarious price band between £125,000 and £250,000
  • Every time Stamp Duty % rate is increased, spike in sales under £250,001 gets higher

LCP chief executive Naomi Heaton said:

“The Government need to grasp the nettle and reduce the tax hike at £250,001.

“While it will have a cost to the Exchequer, it will be a drop in the ocean compared with the stimulus packages already introduced.

“The long-term impact for these packages is unknown and probably dangerous, whilst reducing the Stamp Duty rate is guaranteed to make a difference for good, for second steppers and first-time buyers.”

Categories: Uncategorised

Should The Rate Of Stamp Duty Be Reduced?

The Government’s Stamp Duty, specifically the £250,000 threshold has come under fire from the industry as new research emerges.

The Government’s Stamp Duty, specifically the £250,000 threshold has come under fire from the industry as new research emerges.

According to the research, commissioned from Cass Business School by the London Central Portfolio, there are 93% more transactions of homes priced between £240,000 and £250,000 than between £250,000 and £260,000.

The research also stated that 13,866 vendors were forced to sell at significant discounts, some of which were as high as £10,000. Not only that, but 73% of home owners have properties between £125,000 and £250,000 (the points at which Stamp Duty kicks in at 1% and 3% respectively – a threshold that has not been changed since 2000 when the average house price was £79,242).

In addition, the report also raised some alarming statistics:

  • 93% more transactions occur just beneath the 3% Stamp Duty threshold than above it
  • 9,721 homeowners a year unable to sell because of threshold
  • They may have to wait 2.5 years to get a fair price for their property
  • Additional 13,866 forced to sell their property at up to a £10,000 price discount
  • At least 50,000 households will face a £7,500 Stamp Duty tax bill in the next five years
  • 73% of market sit in precarious price band between £125,000 and £250,000
  • Every time Stamp Duty % rate is increased, spike in sales under £250,001 gets higher

LCP chief executive Naomi Heaton said:

“The Government need to grasp the nettle and reduce the tax hike at £250,001.

“While it will have a cost to the Exchequer, it will be a drop in the ocean compared with the stimulus packages already introduced.

“The long-term impact for these packages is unknown and probably dangerous, whilst reducing the Stamp Duty rate is guaranteed to make a difference for good, for second steppers and first-time buyers.”

Categories: Uncategorised
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