Yes please to Mansion Tax, one third of public says

Stamp Duty Land Tax changes, extending the Help to Buy scheme and introducing Mansion Tax are the most popular housing policies people want to see after next year’s general election, according to research out today from Rightmove.

The research also found that only 6% of people looking to move in the next 12 months say the election has had an impact on their home-moving decisions.

Over one-third (35%) of people say they would like the Government to change the price brackets for Stamp Duty bands, and one-third (33%) think the Help to Buy schemes should be extended.

Almost a third (31%) of people would like a Mansion Tax on homes worth over £2m to be introduced, and 30% would like to see SDLT completely scrapped, while plans to build more homes and new towns came further down the list.

Rightmove director Miles Shipside said: “It’s understandable that home-movers want the policies that will help them in their current situations, whether they’re a first-time buyer with a smaller deposit wanting to use the Help to Buy scheme to get a step on the ladder, or a second-stepper worried about stamp duty bands.

“While these policies could temporarily help more home-movers, it’s the house-building programmes that really need ramped up so that there are more affordable homes for people to buy in areas of high demand.

“Only a small number of people say their home-moving decisions have been affected by the general election which is now less than six months away, so rather than waiting to see what happens they’re instead deciding if it’s the right time in their life and if they have the finances they need to move.”

* Meanwhile, the Building Societies Association has called on George Osborne to announce reforms to the Stamp Duty Land Tax in his Autumn Statement next Wednesday.

Writing to the Chancellor, the BSA said reforms to the “unfair”slab structure were long overdue and action was needed.

The slab structure means SDLT is levied on the whole purchase price, not just the portion over the thresholds set by the Government.

This is different to, for example, Income Tax where a higher rate tax applies only to income above a particular threshold.

Robin Fieth, chief executive of the BSA, said: “We have long been calling for the reform of Stamp Duty. Scotland has proved that structural change is possible and the Welsh Assembly may well follow suit with a target date of April 2018.

“It seems unfair that buyers see a difference of 200% and more in their tax bill for a very modest increase in purchase price.”

The Scottish Parliament is replacing Stamp Duty Land Tax with a Land and Buildings Transaction Tax next April.

However, that too has its critics, with its introduction of new 10% and 12% rates on properties worth more than £250,000 and £1m respectively.

Critics say that the changes are little more than a tax raid by the Scottish government, and will benefit first-time buyers but penalise anyone paying £325,000 or above.

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One Comment

  1. Yorkshire Agent

    " Critics say that the changes are little more than a tax raid by the Scottish government, and will benefit first-time buyers but penalise anyone paying £325,000 or above." Would the last entrepreneur to leave Scotland, please turn out the lights!!!

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