Stamp duty: Five ways abolishing the tax could change the housing market


One of the great selling points of stamp duty abolition is the extra mobility it should provide for workers, buyers, sellers and downsizers, according to experts.

“Homeownership is the foundation of a fairer and more secure society – but stamp duty has denied that opportunity to too many for too long,” says Paula Higgins, chief executive of the Homeowners Alliance.

“Our research shows over 800,000 homeowners have shelved moving plans in the past two years, and stamp duty is a major barrier.”

The Institute for Fiscal Studies (IFS), an independent economic think tank, says the winners will be those who want to move frequently, to more or less expensive homes.

It should, for example, clear an obstacle for older homeowners, who want to sell a family home but are discouraged by stamp duty. If they are more likely to move, then their homes become available to younger families and the whole market becomes more fluid.

However, others suggest the influence of stamp duty could be overblown.

“Take someone downsizing, from a £750,000 property to a £300,000 one. In England and Northern Ireland, they’d pay £5,000 in stamp duty. It’s a fraction of what they’re likely to pay in estate agency fees, and sits along a huge range of costs from conveyancing to removals,” Ms Coles from Hargreaves Lansdown says.

“It begs the question of whether removing the cost of the tax is a gamechanger.”


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