A property law firm is the latest to back a call for a stamp duty holiday to help kick-start the housing market after the lockdown.
Collyer Bristow has joined the Royal Institution of Chartered Surveyors, Knight Frank, Home Builders Federation and others in saying that swift action is needed to prevent further damage to the market.
Janet Armstrong-Fox, partner and head of private client property at Collyer Bristow, says: “The residential market is all but at a standstill and will remain so until the current restrictions are lifted. Even then, a slow return to a buoyant market is predicted. Clearly something is needed to kick-start the housing market.”
She continues: “We recognise that this will be a sizeable challenge for government: stamp duty has been a cash cow for HMRC coffers and will come at a time when it will be looking to increase tax revenues following the extensive support offered throughout the Covid-19 crisis.
“Whilst a stamp duty holiday is unlikely, a reduced rate for a set period of time for homes under a £500,000 threshold, and perhaps even higher in London, would provide the stimulus needed to reignite the market.”
But Armstrong-Fox says the action is needed urgently.
“We would urge government to act swiftly in introducing any relaxation of the stamp duty regime as the rumours of such a move may further dampen the housing market with buyers and sellers waiting for fear of missing out on some impending relaxation” she urges.
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I think stamp duty is fine extend to 500k and a little more in London Central but if you have 500k plus for a first home you have enough to pay stamp duty. Cut back on pims, polo and gin
Surely Govt must realise that if it abolishes ALL SDLT for all sales up to £500000 it will still reap vast amounts of taxes from all the consequent economic activity that results from a house move.
If nobody moves then Govt misses out on all that economic activity!
People will then tend to improve rather than move.
This tends to then reduce the numbers of cheaper homes for sale as improvements tend to uplift the value of properties
SDLT is a major disincentive to move.
Improvement where possible tends to be the logical response to this iniquitous tax.
Removing SDLT should be regarded by Govt as a bit of QE.
It can just borrow what it might have received in SDLT but will receive substantial payback from all the economic activity generated.
Govt can borrow money so cheaply that it makes eminent sense to shake that money tree to generate taxable economic activity.
Get rid of stamp duty all together, lots of people can't afford it, they have to think twice before buying the house or not. I personally think it's a loophole con from the office of hmrc/government.
My suggestion would be for SDLT to return back to the 1% for all properties ehether first time or 10th time buying. This was what it was for many years and the government did not go bankrupt. The penalty of 3% and 4% on 2nd homes and buy-to-let isn't fair at all. Its a reap off scheme which has discouraged investment for new investors. We are at a time that government should do anything and everything possible to get people who have hidden monies to spend them, do their is more than enough money in circulation. If the government rescinds this decision and gives everyone that stamp duty break of making SDLT 1% for all homes, the housing market will be kickstarted.
NO MORE PENALTIES FOR LANDLORDS, ITS TOO MUCH, THE GOVERNMENT HAS PUNISHED THEM ENOUGH BY SQUEEZING THE LIFE OUT OF THEM. PLEASE STOP AND LET THEM BREATHE. ALL THEY ARE DOING IS CREATING A LEGACY FROM THEIR SWEAT SND HARD EARNED MONEY FOR THEIR CHILDREN AND POSTERITY, AND THEY DESERVE IT!
Unfortunately your excellent suggestions don't factor in to what the Tories consider are political imperatives.
They still for some bizarre reason believe they need to appease GR by virtue signalling with ridiculous policies which damage whole sectors of economic activity in the property market.
They seriously believe these GR snowflakes will vote Tory if somehow LL are eradicated.
I don't know if any Tory politician has ever engaged with a GR snowflake but if they had they would surely have been disabused of the idea the the Tory would receive a GR snowflake vote.
It will Never happen so why do the dopey Tories persist in having policies which damage income generating activity.
It defies all logic.
I never believed that the Tories would prove to be so politically illiterate.
But this is what we currently have.
I believe it is more a generational divide.
There aren't many young Tories.
No surprise therefore how little the Tories understand GR who are naturally Labour voters.
It is the former traditional Labour voters that are now the Tory voters.
The Tories need to free up the mortgage market by getting rid of MMR and allowing long- term IO mortgages with NO repayment vehicle required beyond that of just selling the property.
I just don't believe the Tories are sophisticated enough in political intellect to realise they need to abolish policies like S24 and SDLT surcharges.
But the Tories are so stupid they won't do any of this.
Consequently the property market in general will remain moribund for many years.
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