Purplebricks has backed Conservative proposals to reform Stamp Duty despite no certainty that such a change will be in the party’s election manifesto.
The Conservative Party has not yet published its manifesto but Prime Minister Boris Johnson said during his leadership campaign that he would consider raising the Stamp Duty threshold from £125,000 to £500,000 and cutting the top rate from 12% to 7%.
Research by Purplebricks and property market economists Glenigan estimates that such reforms would lead to an additional 131,000 house completions in the next 12 months alongside a saving of £3.2bn or £4,300 each in Stamp Duty costs for movers.
No duty would be payable on 89% of home purchases, the research claims.
The analysis claims this reform would provide a direct £1.7bn boost to the economy in move related spending including conveyancing fees, property surveys, estate agency fees, removal costs, decorating and home furnishings.
In addition, movers would spend a further £473m on improvements to their new homes, Purplebricks claims.
Whilst the government would lose £3.2bn in Stamp Duty revenue, the rise in moving spend, VAT and other tax receipts would generate £1.2bn, according to Purplebricks.
The agent also predicts that a rise in revenues received by conveyancers, surveyors, retailers and builders would boost their spending, giving an estimated £6.2bn boost to the economy.
Vic Darvey, chief executive of Purplebricks, said: “Reforming Stamp Duty is the key to unlocking growth and getting Britain moving.
“These proposals will kickstart both the UK property market and the wider economy.
“This could help growing families move into bigger properties, make downsizing much more appealing for empty nesters and help first-time buyers get a foot on the property ladder.”
Why do Purplebricks care – they’ve been paid and are out of the whole transaction the second they have had their upfront fee. I’m surprised they’ve even heard of stamp duty! lol
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Whilst the government would lose £3.2bn in Stamp Duty revenue, the rise in moving spend, VAT and other tax receipts would generate £1.2bn, according to Purplebricks.
Just about sums up everything you need to know about PB no-sense fiscal mentality…… Lose, lose.
£2 billions loss….. brave government that would actually implement such a policy.
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Vic? El Presidenti of Purplebricks ….where dreams remain just that.
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I think you find it’s not just Purplebricks who wants stamp duty sorted out, all agents do, all landlords do and help to buy options for new builds should be taken away.
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