Property experts are cautious about changes to stamp duty, though most acknowledge that the current system is flawed.<\/p>\n
Chancellor Rachel Reeves is reportedly considering swapping the tax with one paid by sellers of properties worth over \u00a3500,000.<\/p>\n
Council tax could also be exchanged with a new local property tax.<\/p>\n
Daniel Austin, CEO and co-founder at independent lender ASK Partners, raised concerns about the news.<\/p>\n
He said: \u201cThe Chancellor\u2019s proposal to impose a new tax on homes sold for over \u00a3500,000 is a short-term fix that would do little to close the gap in public finances, stabilise the property market, or support long-term economic resilience and growth.<\/p>\n
\u201cIf implemented, the tax risks creating an artificial ceiling on many properties around the \u00a3500,000 threshold.<\/p>\n
\u201cWhile this may seem like a positive development amid the current housing crisis, most first-time buyers do not enter the market at this level, and because housing operates in an upward chain, the impact would reverberate across all price points.<\/p>\n
\u201cIn London, where the average home now costs nearly \u00a3700,000, the measure would hit families hardest, incentivising sellers to increase prices further in order to absorb the tax burden.<\/p>\n
\u201cThe government is right to review the current system which does constrain the market. However, as I outlined in my recent letter to the Chancellor, the solution is not more taxes \u2013 it\u2019s building more homes to increase supply and unlock market mobility.\u201d<\/p>\n<\/p>\n
Colleen Babcock, an expert at property portal Rightmove, seemed more open to the system changing.<\/p>\n
She said: \u201cStamp duty is a huge barrier to movement, from first-time buyers to downsizers.<\/p>\n
\u201cWe recently called for an increase to the zero rate thresholds at which first-time buyers and home-movers start paying stamp duty, and backed a suggestion from one of our agent partners that stamp duty should be paid over a longer time period.<\/p>\n
\u201cIf changes are brought in that make home-moving genuinely more affordable for people then we would welcome them, but without firm details it remains to be seen if a different type of taxation would leave property owners better or worse off in the long run.\u201d<\/p>\n
And Steph Walker, co-founder of TAUK estate agents, was also encouraged that the government wants to change the system<\/p>\n
She said: \u201cAny reform of property taxation should be judged on whether it makes the system simpler and fairer for ordinary buyers and sellers.<\/p>\n
\u201cStamp duty is widely seen as outdated and a barrier to people moving home, so exploring a more proportionate property tax is a welcome step in the right direction. Above all, the aim should be to make moving as straightforward and accessible as possible for everyone in the market.<\/p>\n
\u201cWhile the detail will be important, it\u2019s encouraging to see the government actively considering change.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Property experts are cautious about changes to stamp duty, though most acknowledge that the current system is flawed. Chancellor Rachel Reeves is reportedly considering swapping the tax with one paid by sellers of properties worth over \u00a3500,000. Council tax could also be exchanged with a new local property tax. Daniel Austin, CEO and co-founder at […]<\/p>\n","protected":false},"author":1,"featured_media":2782,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-2781","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n