More calls for Stamp Duty to be amended
By |Published On: 11th August 2017|

Home » Uncategorised » More calls for Stamp Duty to be amended

More calls for Stamp Duty to be amended

By |Published On: 11th August 2017|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

Another report has called for improvements to the existing Stamp Duty regime, in order to substantially improve the number of housing transactions across England and Wales.

Alterations that came into force in April 2016 saw an additional 3% stamp duty surcharge added on buy-to-let and second property purchases over £125,000. This adds thousands of pounds to fees, particularly in London and the South East.

Investors can see Stamp Duty fees run into tens of thousands – making the existing housing crisis far worse.

Deterrent

Present rates of Stamp Duty are putting older buyers off downsizing and stopping more homes coming onto the market for those at the bottom of the housing ladder.

Research from the London School of Economics and the VATT Institute for Economic Research suggests that levels of moving could increase by a quarter if the tax was to be scrapped.

More calls for Stamp Duty to be amended

More calls for Stamp Duty to be amended

Professor Christian Hilber, co-author of the report, observed: ‘The key message is that stamp duty hampers mobility significantly, it create a mismatch and distortions in the housing market. Our analysis suggests that mobility would be 27% higher if stamp duty was abolished or replaced with an annual tax on the value of property.’

‘If you are a young family and you have an additional child, you’ll need an additional room, but the stamp duty is discouraging this kind of move because of the additional cost and lack of available homes to move into.’[1]

 

 

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/8/cut-stamp-duty-to-free-up-mobility-says-report

 

 

About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

Share this article:

Related Posts

Categories:

Looking for suitable
insurance for your
investment?
Check out our four
covers for landlords