The Telegraph claims that because of the changes, the Exchequer has received £370 million less in stamp duty than it expected and that the changes have led to a steep decline in property sales, costing the UK economy nearly £1 billion because of a reduction in the number of people selling homes and the subsequent reduction in demand for associated service such as removals or renovations.
The Telegraph uses analysis by Oxford Economics to highlight issues caused by the SDLT changes;
- 1,950 fewer sales of properties worth more than £1 million
- 14,000 lost jobs (indirectly)
- 270 million less stamp duty collected than expected.
- £1 billion lost to the economy.
- Raising stamp duty by 1 per cent on homes worth between £1 million and £2 million led to an eight per cent decline in transactions. The Office for Budget Responsibility had predicted the figure would be 2.8 per cent.
The Treasury claims that “The overwhelming majority of those who pay stamp duty – 98 per cent – are saving money thanks to our reform, which has done away with the unfair old system.” and “Over 780,000 homebuyers saved an estimated £657 million on stamp duty in the year since the tax was reformed.”
MPs, housebuilders, building societies and estate agencies have called for the SDLT changes to be reversed, but is this a case of the wealthy wanting a tax cut or is the lack of movement in the £1 million plus property sector hampering social mobility and impacting every level in property chains?
Read the Telegraph article here.