Stamp Duty reform overdue

The recent press release from Rightmove is timely. We have seen a modest improvement in the sales market but with First Time Buyers still under pressure to raise as much capital as they can, any increase in the amount of tax – and that’s what Stamp Duty is – is very unhelpful.

I have written about this on many previous occasions, but the Government must go much further than just looking at First Time Buyers and focus on removing this hugely damaging tax on all property transactions and replacing with a simple one rate percentage for all buyers but with an exemption up to say the first £500,000 in the Southeast for the important group known as First Time Buyers.

Stamp duty tax has deterred sellers from moving in favour of retaining and improving their current property. This has, in turn, cut off supply and added fuel to house price inflation.

Strip out this policy, increase supply and free up the market.