A cut in stamp duty to help first-time buyers is likely to push prices by at least the amount the reduction is supposed to save, MPs said.Read the full story ›
Research carried out in December revealed 86% of surveyors reported no increase in first-time buyer inquiries following the changes.Read the full story ›
The reforms, announced last year's autumn Budget, cut stamp duty to 95% of all first-time buyers, with 80% paying no stamp duty at all.Read the full story ›
The chancellor cut duty on homes sold up to £300,000 in his Wednesday Budget, a boon to young people hoping to get onto the property ladder.Read the full story ›
More than a quarter of home buyers in England and Wales are now paying stamp duty at the higher rates of three percent or more and are facing bills of more than £7,500.
The research has been published by the TaxPayers' Alliance, which is calling for a cut in the "punitive levy".
Last year the tax raked in £4 billion for the Treasury, with £3.6 billion of that generated by the 3 percent rate.
But a Treasury spokesperson says cutting stamp duty would lead to other tax hikes.
She said: "At a time when we are focused on reducing the deficit, cutting stamp duty land tax would create a significant cost to the Exchequer and this would have to be met through increasing other taxes.
"We believe there are other more effective ways to support the housing market, such as improving access to finance."
Shadow housing minister Jack Dromey has told Daybreak that "urgent action is necessary" to stop the rising costs of stamp duty.
He said the UK is currently experiencing "the lowest rate of housebuilding since the 1920s", he added, "above all else" we need to build more affordable homes.
Paula Higgins, chief executive of the Homeowners Alliance, said the housing market is being "choked by the rising cost of stamp duty". He added:
The overwhelming majority of people want to own their own home, and the Government says it wants to help them.
But the reality is that its 'home tax' is taxing their aspirations to death.
The Homeowners Alliance said stamp duty had been "transformed from a small irritant to a major dampener on housing activity", which has risen seven times faster than inflation over the last decade-and-a-half.
It said in 1997, the Government made just £830 million from the residual stamp duty, but it was eight times higher in 2007.
The Alliance is urging for a radical overhaul of the system including first-time buyers being exempt from paying any stamp duty at all.
If stamp duty thresholds had risen in line with house price hikes in recent decades, the £250,000 threshold would now be over £600,000 and the £500,000 threshold would have been lifted to £1.2 million, the group said.
The housing market is being "choked" by increasing stamp duty costs, a report has warned.
The typical stamp duty paid when buying a home has rocketed more than tenfold since the mid-1990s, campaign group Homeowners Alliance said.
A report from the group showed that the average stamp duty paid by home buyers had risen from £532 in 1995/96 to £5,957 by last year.
It argued that a major factor behind the sharp drop-off in home ownership rates was down to the "ramping up" of stamp duty costs by successive governments.
The Times (requires subscription) is reporting that George Osborne will reveal a new seven percent rate of stamp duty on houses worth more than £2 million in his Budget.