Wednesday, 9 August 2017

Stamp duty causing bottleneck in housing market, report says

Stamp duty is making the housing crisis worse because it is deterring older homeowners from downsizing, according to a new report.
It comes amid a concerted campaign by some Conservatives to convince the Chancellor to reform the system in the Autumn budget, it has been reported.

The document, from the London School of Economics and the VATT Institute for Economic Research, found the rate of home moving would be 27% higher if the levy was completely abolished.

At the moment, stamp duty costs £143,000 on a £2m property or £20,000 on a £600,000 home.

Professor Christian Hilber, who co-authored the report, said: "The key message of our paper is that stamp duty hampers mobility significantly.

"If you are a young family and you have an additional child, you'll need an additional room, but the stamp duty is discouraging this kind of move because of the additional cost and lack of available homes to move into.
"In a nutshell, the stamp duty discourages the elderly from downsizing and young expanding families from moving to more adequate larger housing."

SKY     News.