Could Stamp Duty actually be AXED? Calls to BAN hated tax grow as housing crisis worsens
THE campaign to axe stamp duty is growing, with the hated tax being blamed for worsening the housing crisis.
What does the UK property market currently look like?
The levy on purchases is adding to the burden on first time buyers and making it harder for older homeowners to downsize, reducing transaction levels to an all-time low.
Stamp duty is charged at 2 per cent on homes above £125,000, adding £2,500 to the cost of a £250,000 property.
It then increases in tiers to a maximum of 12 per cent on £1.5million properties, with a 3 per cent surcharge on buy-to-lets and second homes.
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Our branches have seen first-time buyer registrations drop by almost 20 per cent over the year
Yesterday's figures from the Office for National Statistics show that the average property hit £223,257 in June, up 4.9 per cent in a year.
Paul Smith, chief executive of estate agency chain Haart, said it means that buyers have to fork out £10,000 more than they did a year ago: "This is creating a real impact on the ground, as our branches have seen first-time buyer registrations drop by almost 20 per cent over the year."
He said the Government must slash the stamp duty "stealth tax" instead of profiteering at the expense of homeowners: "Unless we see a more comprehensive break for first-time buyers, the UK's legacy as a property-owning democracy is at risk."
Girlings Retirement Rentals founder Peter Girling said stamp duty is deterring buyers: "It is causing problems both for young families who need extra space and the older generation who want to downsize, but struggle to find a buyer."
