MPs take aim at stamp duty charges
|Author: Craig Bees||Published: 10th May 2022 09:11|
With stamp duty costs always a factor in moving home, comes the news this week from leading estate agent website Landlordzone that Conservative MPs are urging the government to cut or scrap stamp duty in a bid to save homebuyers thousands of pounds – although their proposals don’t extend to landlords.
Kevin Hollinrake, a member of the Treasury select committee, said that stamp duty was and is a “disincentive to transact, which is bad for the economy,” and suggested the initial £125,000 threshold could be axed, effectively making the pandemic stamp duty holiday for lower-value homes permanent.
However, although he believes the current surcharge is fundamentally wrong, Hollinrake was unsure whether landlords should be included in any potential shake-up by the Treasury.
“Landlords do a very good job, providing accommodation for lots of people but this is a tricky area and I’m on the fence with that one,” he said. “It needs to be looked at, but this is not a fully worked out proposal.”
Rising house prices mean 1.2m homes that were previously zero-rated now require buyers to pay stamp duty after moving above the £125,000 threshold, meaning they face 2% tax on any purchase funds above that amount.
According to a report in The Daily Telegraph, a further 3.1m have been dragged into higher stamp duty brackets, paying between 5%-10%. First-time buyers, who will also have to raise an extra £4,000 for a deposit compared with two years ago and an additional £5,000 in annual household income to secure a mortgage, will be hardest hit, according to analysis by Zoopla.
Meanwhile, the Treasury has collected £18.6 billion in the year to March 2022, an increase of £6.1 billion despite the stamp duty holiday during the pandemic.
MPs Sir John Redwood and Greg Smith MP have also called for changes to the current tax system.
Price on application change: from the end of this month the term ‘price on application’ in property listings will be outlawed and estate agents will have to declare a price on portals and websites, according to the National Trading Standards.
Monthly draw: plenty of time to enter our May draw and the chance to win a case of Italian wines (red/whites/mixed).
How To Enter: every valuation and instruction for sale or rental in May (closing date is Wednesday May 25) will be entered, the winners being notified by e-mail.
So, if you’re thinking of selling or letting your property and want to win this great prize call (01327) 359164 and speak to our sales or lettings team.
Until next time.