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TODAY'S OTHER NEWS

Stamp Duty plummets by £1 billion following surcharge backfire

New figures from HM Revenue and Customs suggest that stamp duty receipts have fallen by no less than £1 billion.

The drop was from £12.9 billion in 2017/18 to £11.9 billion in 2018/19.

This is despite overall HMRC tax receipts rising from £594 billion to £623 billion during the same period; this included inheritance tax receipts going up 3.1 per cent to £5.4 billion.

Analysts have rapidly put this down, at least partly, to resistance to purchase buy to let properties as a result of the additional homes stamp duty surcharge introduced in April 2016, and subsequent tax measures making buy to let less attractive.

The Daily Telegraph quotes David Smith of the Residential Landlords Association as saying: “The government are now in the last chance saloon to reconsider tax policy and seek to promote positive growth rather than seeking short-term gains.

He continues: “The people who will really suffer as a result of this fatal loss of supply are tenants, including a significant number of families who are reliant on private landlords for homes, as well as young buyers.”

Shaun Church, of Private Finance, a mortgage broker, adds: “With house price growth more sedate in comparison to recent years, and mortgage rates seemingly staying low, it is likely that first-time buyers will continue to prop up the market as the year progresses.”

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    Cane toads were introduced in Australia as pest control but they nearly decimated the entire species of wildlife. This was done without proper research. The government in the UK is doing the same thing; constantly introducing new laws and regulations in housing industry without due thought process. They do not pay any attention to the consequences of their decisions.

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    Ibrahim, absolutely right. George Osborne's massive tax hikes on stamp duty has almost killed the top end. Top end i mean £1.5 mil plus. Central London will probably do ok where the mega mega rich live. But the rest of the country is struggling to sell homes that attract hundreds of thousands of tax. Many buyers who can afford a million plus home will not give the Govt this extra tax on principle. They already pay far too much. When the Maybot is replaced and someone with common sense takes over i am sure this will get sorted. Halve the tax, double the transactions equals same revenue, plus huge spin offs for local jobs and more more.

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    I hope you're right with your suggestion that there is someone with more common sense than May, but I'm doubting it. The Conservatives seem hell bent on destroying the PRS and themselves.

     
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    I am a die hard Tory - but what on earth are they doing with the property industry???
    Its as if they come into work every day and decide to shoot themselves in a foot yet again even though they know it hurts

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    At least dead cane toads can be recycled into stubby holders, pencil cases etc. Not sure what we can do with a stuffed PM .... well, we do have a village scarecrow competition coming up next week, she'd look great sitting on my fence.

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