The majority of homeowners and homebuyers believe Stamp Duty Land Tax is outdated and needs reform.
The mortgage lender Butterfield commissioned an independent survey of 1,125 homeowners and homebuyers in England and Northern Ireland, where the stamp duty regime still exists.
It found that 58 per cent want to see an overhaul, calling SDLT “outdated.” And 67 per cent believe the government should come up with a fairer system to tax property transactions or home ownership.
The research revealed that SDLT appears to be preventing no fewer than 23 per cent from getting onto or moving up the property ladder.
The majority of homeowners and buyers in England and NI - some 70 per cent - are in favour of overseas buyers paying a higher SDLT surcharge than the current two per cent, while 66 per cent think those buying second homes and investment properties should also have to pay a higher rate, which currently stands at three per cent.
Butterfield Mortgages’ research showed a strong opposition among homeowners and homebuyers towards inheritance tax on real estate.
Three in five feel inheritance tax should be scrapped for properties that are passed down after someone’s death, given SDLT has already been paid.
The study also highlighted a desire for environmental considerations to factor into the current form of property taxation, with 36 per cent of respondents keen for the introduction of a SDLT surcharge for properties that are less energy efficient.
Butterfield chief executive Alpa Bhakta says: “The stamp duty holiday has placed property taxation firmly in the limelight, and our timely research shows there is significant demand among homeowners across England and NI to see a major overhaul of the tax.
“Primarily, the majority are hoping for a fairer alternative to be implemented, with greater surcharges targeted at overseas buyers and landlords. Given both groups are already subjected to surcharges but play a key role in driving property investment in the UK, the Government will likely be mindful of not introducing much higher taxes for fear of harming the health of the property market or deterring too many prospective buyers, which would only reduce HMRC’s SDLT receipts.”