Is stamp duty still the single biggest obstacle for homebuyers in current market?

Specialist sales and lettings agent, Patterson Bowe, has claimed that stamp duty remains the single biggest issue facing homebuyers in the £1m plus market.

Related topics:  Finance
Warren Lewis
2nd September 2015
house money

Latest transaction data from HM Revenue and Customs has shown a decrease of 4.4% in residential property transactions between June/July 2015 and a marginal increase of just 0.2% year on year, despite the stamp duty reforms that came into place at the end of 2014.  However, transactions in the £2m plus market are 38% down.

Similarly, figures from Patterson Bowe reflect a minimal percentage increase in property sales due to an ongoing lack of supply of properties in the Royal Borough of Chelsea and Kensington, a figure that far outweighs pent-up demand.

Stuart Patterson, Owner and Managing Director of Patterson Bowe, has argued that the Government should be doing more to maintain liquidity in the housing market by reconsidering the existing stamp duty structure.

Patterson says: "With the top end of the market stagnating, homeowners are finding it difficult to move on which is having a serious impact on the market as a whole. In our experience, stamp duty really still is the biggest issue for buyers at the top end of the market. As a healthy market is one that is inclusive of all buyers, we need to do more to address this issue at its core and liberate the top end of the market.

We urge the Government to consider a complete overhaul of the stamp duty pricing structure. We recommend that stamp duty is charged in a similar fashion to council tax, on a borough by borough basis or by postcode for regions outside of London. This is a much ‘fairer’ approach that would provide a practical solution for all areas  of the market and is the most likely way to ensure healthy and sustainable housing market growth in years to come."

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