Purplebricks is calling on Boris Johnson to follow through on his Stamp Duty promises.
Purplebricks says this would bolster the UK economy by £6bn and bring around 130,000 more homes on to the market each year.
Johnson has previously said he would raise the Stamp Duty threshold – where it starts to be paid – from £125,000 to £500,000, and cut the highest rate of Stamp Duty from 12% to 7%.
Almost a third (29%) of UK home-owners say Stamp Duty is the number one factor which would stop them from purchasing a new home, according to research commissioned by Purplebricks.
However, only 28% of UK home-owners think Johnson would follow through and make the changes he has flagged up.
Since the increases to Stamp Duty in 2014, transactions have fallen by 8%.
If the proposed changes to Stamp Duty materialise, 90% of people moving home wouldn’t have to pay Stamp Duty and 15% more properties would come on to the market each year.
Although Stamp Duty receipts would decrease by around £3bn there would be an overall net boost to government revenue of around £1bn due to associated spending and increased economic activity.
Vic Darvey, CEO of Purplebricks, said: “We believe that changes must be made to Stamp Duty to help get Britain moving. This would kick-start both the property market and the UK economy.
“Unless Stamp Duty changes, growing families are less likely to trade up to bigger houses even if space is tight, and older people are less likely to trade down, even though they may be rattling around empty nests.
“Our research shows that as many as 17% of home-owners are currently living in an unsuitable home but can’t afford to move.
“With almost a third of UK home-owners saying Stamp Duty is the biggest factor that stops them moving, combined with the uncertainty and lack of consumer confidence, we need the Prime Minister to deliver his planned changes to Stamp Duty to help boost the housing market and get Britain moving.”
Darvey appeared on Sky News to deliver these heavyweight industry messages – which suggest a PR change of direction for Purplebricks, emphasising a mainstream position.
Darvey was also asked about Purplebricks itself and the possible changes to its pricing structure.
He said that Purplebricks had gone from nothing five years ago to being Britain’s biggest estate agent.
He said the business was now pausing for breath.
He would not be drawn on details but said the business had a clear plan to achieve 10% market share and that it would be “evolving” its pricing model.
Darvey said there would be a series of tests – “and consumers will tell us whether we have got that right or wrong”.
* Separately, the Sunday Times yesterday reported the possibility of a Purplebricks’ shareholders’ revolt at this Thursday’s AGM. The paper said that shareholder advisory service ISS is urging shareholders to vote against the firm’s financial statements, saying that directors’ incentive awards are not ‘subject to any performance hurdles’. However, it has been suggested that Purplebricks executives are not especially well paid. Founder Michael Bruce received £273,000 last year. His departure terms are to be revealed in the next annual report to be published next year.
Vic
“He said the business was now pausing for breath.”
More like a death rattle
“Darvey said there would be a series of tests – “and consumers will tell us whether we have got that right or wrong”.”
Vic I think they have already and you have so far failed to halt the decline .Told you very clearly in Australia and USA you got it wrong .Shareholders have voted with their feet and instruction levels have also hit a glass ceiling in the UK .
However apart from playing Dr .Death overseas you seem to have taken no action whatsoever to improve revenue streams or implement any changes .Where is the cunning plan?
The Canadian operation whilst might be profitable surely that makes no sense in isolation now you have closed down the major part of your N American operation.
Boris isn’t going to help you. Time to step up to the plate and offer an exemplar service
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“…instruction levels have also hit a glass ceiling in the UK .”
I would suggest more like titanium-reinforced concrete.
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“Purplebricks says this would bolster the UK economy by £6bn and bring around 130,000 more homes on to the market each year.”
I would take any numbers forecast by PB with a very large pinch of salt ! 🙂
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Purplebricks should comment on something they actually know about………….?
…anybody?
………anybody?
…………….thought so!
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Like his bonuses’ about to be challenged by his shareholders.
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Unsubstantiated stats and figures from PB… shocked!
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**BREAKING**
Woodford dumped another mahoosive chunk of #Purp shares at the end of last week according to RNS posted this afternoon.
Almost halved the holding in the company.
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