A chorus of calls for new Prime Minister Boris Johnson to act decisively on Stamp Duty to avoid damaging the market has greeted his election as Tory leader.
Johnson, who has previously mentioned the possibility of an emergency Budget in September, has said he would scrap Stamp Duty on homes under £500,000, and cut it from 12% to 7% on homes worth over £1.5m.
He has also indicated an interest in switching responsibility for paying the tax from buyer to seller.
Paul Smith, CEO of Spicerhaart, said: “While Boris’ proposals will come as welcome news for many, we could see transactions slow in the aftermath of his victory as buyers halt activity until the policy introduction, so he needs to move quickly.
“In the long term, I would expect to see buyer interest increase.
“I urge Boris to do all he can to encourage buyers and sellers to the market, and to make sure that the UK can maintain its status as a home-ownership democracy.”
Nick Leeming, chairman of Jackson-Stops, said: “Prohibitive Stamp Duty charges have long been a challenge for those on all rungs of the property ladder, and so both buyers and sellers will now be eagerly awaiting confirmation on how he intends to address this.”
Dominic Agace, CEO of Winkworth, said: “Any initiative to free up the housing market is good, so we’d be pleased to see Boris Johnson implementing some of his proposals as the new Prime Minister.
“It seems that his policies are designed to get the market moving, particularly benefitting home movers in London and the south-east, where the cost of moving has become a huge sticking point in recent years.”
Iain McKenzie, CEO of the Guild of Property Professionals, said he would welcome any positive move on Stamp Duty, and also taxes on landlords.
He called for the housing sector to be removed from parliamentary control.
Glynis Frew, CEO of Hunters, said that Johnson’s plans for Stamp Duty spelled good news, but expressed dismay at the likely cabinet reshuffle and appointment of yet another housing minister.
Fraser Slater, CEO of central London agent Ludgrove Property, said: “Looking at history, a top Stamp Duty rate of 4% would be the optimal level (versus 12% today).
“The last time the top rate was 4%, London property transactions were 94% higher at 175,870 compared to 90,316 transactions in 2018.
“Furthermore, we agree wholeheartedly with Mr Johnson’s sentiment that tax cuts can create more tax revenue.
“Our research shows that a cut in Stamp Duty will actually generate more overall tax revenue through increased transactions and property-related business activity (stamp duty, VAT, corporation tax and employment taxes).
While Boris is doing that can he also bring in self cert mortgages, that will really boost the market 😉
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Perhaps he can also reverse Mays vote losing s21 proposals.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Urge him all you like about Stamp Duty but I think you’ll find that Alexander Boris de Pfeffel Johnson is going to be rather tied up dealing with one or two other things.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Government regulation needed to ban anyone making an offer without a mortgage in principle.
Stamp duty – with the mess with yesterday’s vote, so we can expect months of new uncertainty…until early next year in fact. The slump will get worse now :o(
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Gloomsters and doomsters…
This is electioneering. Don’t expect any changes until after the GE that a no-deal Brexit will require. In the meantime, things willl be sluggish.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register