New research has revealed that twice as many home owners support the new rise in stamp duty as oppose it. According to a poll conducted by YouGov for the HomeOwners Alliance and BLP Insurance, 47% of UK adults support the stamp duty surcharge, while 18% oppose it. Stamp duty reforms introduced at the end of […]
New research has revealed that twice as many home owners support the new rise in stamp duty as oppose it.
According to a poll conducted by YouGov for the HomeOwners Alliance and BLP Insurance, 47% of UK adults support the stamp duty surcharge, while 18% oppose it.
Stamp duty reforms introduced at the end of 2014 which replaced the slab structure of tax with a progressive stamp duty tax were also well-received, with one third (33%) saying the reforms make buying their first home or moving up the ladder more affordable.
The research found that concerns over stamp duty have also subsided substantially in the past two years.
The annual survey, which tracks top housing concerns, showed that in March 2014 64% of home owners said stamp duty was a serious problem, compared to 52% in March 2016.
Paula Higgins, chief executive of HomeOwners Alliance, said: “The British public believe that homes are for living in and not speculating with. The stamp duty surcharge might be bad for landlords but it will allow more young people to realise their dream of owning the roof over their head. This is why we initially called for the tax system to differentiate between aspiring homeowners and property investors. However, we must see the money raised ploughed back into building more affordable housing.”
The 3% stamp duty increase, which came into effect on 1 April, is part of the government’s attempt to curb the buy-to-let market and free up property for first-time buyers.
Kim Vernau, chief executive officer, BLP Insurance, said: “There is a dichotomy in the UK housing market between being able to afford to buy or rent a home. The current government policy in respect of stamp duty is clearly supporting first-time buyers to access the market, which is a positive. The downside is the fact that this impacts adversely on those who cannot afford to raise a deposit and have to rent.
“The increase in stamp duty land tax will deter both individuals and, equally importantly, institutional investors from investing in the provision of long term rental properties, which are needed to help unlock the housing crisis we are experiencing. There needs to be a balance, not least as rental investments will also support the affordable housing sector.”
Stamp duty changes introduced in December 2014 by Chancellor George Osborne to make the system fairer helped buyers save an average of £4,530 last year, according to the latest Lloyds Bank Homemover Review.
The switch from a slab structure to a progressive tax was announced in the 2014 Autumn Statement.
You now pay 0% up to £125,000; 2% to £250,000; 5% to £925,000; 10% to £1.5million and 12% above that. A recent study by Halifax found that since the reforms there has been some evidence of dampening at the top end of the market, with a 20% decline in sales of homes valued above £1.5 million.
