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Budget - 'massive missed opportunity' to help home buyers says Chewton Rose
Failing to reform Stamp Duty is a 'massive missed opportunity' to get more homes onto the market to meet demand and help hard-pressed buyers, said Guy Leaning Branch Partner at Chewton Rose Cobham
"The Government's Help to Buy scheme has helped to restore confidence and its part extension from 2016 to 2020 is good," said Guy
"But leaving the threshold at which buyers have to pay stamp duty at £125,000 is miserly in the face of rising prices.
"Stamp duty is punishing to buyers, especially when a house moves into a higher tax band which is applied to the whole price. Unsurprisingly many sellers feel forced to under value such properties in order to find buyers. The Chancellor should have softened the blow."
For example, when a £250,000 home is bought, stamp duty is 1% or £2,500. If the house were £250,001 the rate is 3% or £7,500.
Chewton Rose, part of the UK's largest independent estate agency, has proposed that each seller should be able to deduct the value of stamp duty paid by their buyer from the stamp duty they pay on their next home.
Such a stamp duty credit would make it easier for young families to move up, freeing up houses for first time buyers. It would also provide an incentive for older homeowners to downsize (incurring no tax) improving the supply of larger family houses.
While the Treasury would lose a proportion of the £6.9 billion it raises in stamp duty this would be partially recouped by a rise in the number of transactions, increasing the VAT collected from increased purchases of white goods, fixtures and fittings and professional services.
Cherwton Rose customers have access to the latest online and social media marketing tools, plus traditional print advertising and 'open house events' to boost buyer interest. Phone lines are open from 8am to 10pm seven days a week. Visit, www.chewtonrose.co.uk