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Stamp duty is buyers’ ‘biggest obstacle’

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  • 02/09/2015
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Stamp duty is buyers’ ‘biggest obstacle’
Despite recent changes, buyers are struggling against stamp duty costs, an estate agent has warned.

London-based agency Patterson Bowe said that those buying a family home in the capital were often being hit with bigger tax bills than before.

Changes to the stamp duty system mean properties sold for more than £1.5m are subject to a 12% rate of tax. With many of these homes located in London, recent data has shown tax receipts from the capital have increased.

Patterson Bowe said transactions in the £2m plus market are 38% down on the same point last year.

Stuart Patterson, owner and managing director of Patterson Bowe, said that many homeowners were now choosing to stay put, causing problems for the supply chain.

“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,” he said.

“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’.

Patterson urged the government to consider a devolved taxation system for properties.

He added: “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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