As part of the Budget yesterday, Chancellor George Osborne announced measures to cut down on stamp duty avoidance by charging companies purchasing properties worth over £500,000 with a levy of 15% of the purchase price.
Nick Sanderson, CEO, Audley Retirement, commented that the Government has ignored the potential importance in stimulating the housing market that stamp duty reform could have.
He said:
“Extending Help to Buy 1 by another four years is a positive move and will continue to benefit first-time buyers and will stimulate housebuilders, but what about the other end of the market? The majority of those aged over 65 own their homes outright and the government must encourage them to downsize in order to free up much needed housing stock. A stamp duty exemption for this demographic would be significant and any rebate for downsizing would be cost neutral for the government. This coupled with incentivising and supporting a generation of ‘last time buyers’ is key to ruffling a few feathers, and committing to an action that could deliver a wide range of benefits across the UK population.”
Looking at the opposite end of the market and first time buyers, Henry Knight, Managing Director of Springtide Capital said that the new building measures are 'futile' without further support for FTBs in the form of stamp duty reform.
He said:
"Whilst we welcome the Chancellor's renewed commitment to increase housebuilding and financial support for small, residential developers, we would have liked to see more help given to first time buyers in the form of stamp duty relief and exemptions. The building and development of new homes is all very promising, but without further financial support for first time buyers it is somewhat futile. We are disappointed not to have seen the threshold increase today to £600,000, in line with the terms of the Help to Buy scheme."
Paul Frost of buying agency Prime Purchase, says:
"The Chancellor missed an opportunity in not reforming stamp duty as it completely skews the market. It should be removed entirely for first-time buyers as it's an unwelcome extra to find when you are buying a home, trying to get a deposit together and don't have much spare cash."
