Stamp duty, the answer?

The Government is looking at a ‘rescue’ package for the current suffering housing market.   The government has pledged to “help people with housing” though has yet to announce the measures and is still working on the exact policy. One of the proposed measures which is being speculated upon is maybe to reduce, freeze or possibly scrap stamp duty. This possibility obviously has a massive impact on revenue to the Treasury.

The speculation in regard to stamp duty is causing the opposite effect that it would be hoped it would have, if it was to be reduced or removed. House sales are being postponed as potential buyers are stalling waiting for confirmation of ther Governments’ intentions. The Government has stated that the talk within the media regarding stamp duty is just speculation and that no proposals have been put forward.

The shadow Treasury spokesman, Philip Hammond, said mentioning a stamp duty suspension without confirming it one way or the other had “created a significant incentive for people to delay the purchase of a property in the hope of avoiding the payment of stamp duty on the transaction”.

“The uncertainty can only undermine the market further, reducing the volume of transactions when they are already at historic lows,” he said.

“Indeed, we now have the worst of both worlds – a potential delay in property transactions, but with no definite proposal on the table.”

Home sellers are reporting frustration at the Governements’ indecison in this matter and it does not seem that this has been considered. Many now feel that they must step forward and make an announcement as without it, the housing market could be stopped dead in its tracks.

We agree that a decison needs to now be made and announced, there is no room for uncertainity in the current housing market. What were good intentions towards helping the housing market seem to have backfired ; this needs to be addressed and rectified before further damage is caused and felt.

The consequence of this indecision and speculation has caused the real question to be pushed to the side lines for the time being. Is reducing or freezing stamp duty the answer? This is yet to be seen and no doubt will cause even further speculation and debate.

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5 Responses to “Stamp duty, the answer?”

  1. In the news today that the government has now announced it plans for stamp duty. An immediate freeze on stamp duty duty on home costing less than £175,000, for the next year.

    With home buyers benefiting from a maximum saving of £1750 it will be interesting to see if this is enough to kick start the property market.

  2. Hi Rich,

    It certainly will be of interest. We are pleased that a decision has been made and announced. As you say whether this kick start the market only time will tell.

    The removal of stamp duty is being described as a 12mth ‘holiday’ from the tax. Lets hope the £600 million loss in revenue has the desired effect.

  3. What concerns me is the effect this will have on sales of properties in the £175k to £180k region?

    Also a ‘maximum’ saving of £1,750 – is this really enough to make a difference?

    Don’t get me wrong I believe this is a step in the right direction. I just don’t feel it goes far enough, and I certainly don’t think the Government have really thought it out.

  4. Making the duty payable by the seller would help as they are the beneficiary of the transaction.

  5. I merely identified your internet page, nonetheless i i would like to state i genuinely liked this page, cheers.

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