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Autumn Budget 2017: Reformed Stamp Duty could rescue property market, legal firm warns

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  • 06/11/2017
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Autumn Budget 2017: Reformed Stamp Duty could rescue property market, legal firm warns
Stamp duty must be reformed in the Autumn Budget or house prices will soar amid a stagnating property market, according to a professional and legal services firm.

The punishing levy deters home buyers and this is stifling investment and hitting market liquidity, Gordon Dadds warned.

Chancellor Philip Hammond has now been urged to use the Autumn Budget on November 22 to overhaul the property tax.

And also scrap entirely the additional 3% stamp duty surcharge on anyone buying a second home, said the firm.

Stamp duty stops the market from operating fairly and is failing to free up homes for first-time buyers, Justin Neal, head of real estate at Gordon Dadds, warned.

He said: “Stamp duty has impacted liquidity in the market and has penalised those looking to move house.

“We are at risk of the property sector stagnating with a lack of houses for sale at a fair and stable price.

“Further opportunity needs to be created in the residential property market for first time buyers and until this is done, tinkering with stamp duty and shared ownership will do nothing but inflate house prices.”

“The Government should do much more to ensure good quality family homes are created, as it may encourage new families to move from the one or two bedroom apartments, which will free up first-time buyer stock for new first-time buyers.”

 

Pressure to change stamp duty

The firm also believes tax on properties unoccupied for more than six months of the year could be applied through council tax.

Pressure has been growing on Hammond to reform stamp duty amid a significant slowdown in transactions.

Stamp duty takings surged by almost a quarter in the three months to October compared to the same period last year, according to the latest HMRC figures.

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