By Daniel Hunter
New Taxpayers' Alliance research reveals that 4 out of every 5 homes sold in 2012-13 will be subject to Stamp Duty within five years and that 40 per cent of homes sold will be subject to Stamp Duty of 3 per cent or more, leaving buyers with a bill of at least £7,500.
Property price forecasts by Savills Research imply a huge increase in the number of homes which will be subject to punitive rates of Stamp Duty. The forecast price rises will lead to the liability of nearly 100,000 homes which incurred 1 per cent Stamp Duty in 2012-13 more than tripling as they become subject to the 3 per cent rate of Stamp Duty.
The threat of much higher Stamp Duty rates will increase the pressure for the Chancellor to cut this unfair, double tax as called for by the TaxPayers' Alliance Stamp Out Stamp Duty campaign.
- By 2017-18, four in every five homes sold will be subject to Stamp Duty
- In five years, two in every five properties sold will be subject to Stamp Duty at 3 per cent or more, with bills of at least £7,500 each
- Nearly a third of all homes where Stamp Duty of 1 per cent was paid in 2012-13 will be subject to the 3 per cent rate by 2017-18. The average bill for those properties will rise from £2,319 in 2012-13 to £8,445 by 2017-18
- In five years, 220,593 of the 725,602 homes which were sold in 2012-13 will be subject to a higher rate of Stamp Duty
- 99 per cent of homes in London will be liable for Stamp Duty in five years and five out of six homes will be subject to the 3 per cent rate
- Three in five homes sold in the North West will be liable for Stamp Duty in 2017-18
- The fastest increase in the number of homes liable for Stamp Duty will be in the East Midlands where the number of properties subject to Stamp Duty will rise from 50 per cent to 71 per cent by 2017-18
- Three in five homes in the South East will be subject to Stamp Duty at the 3 per cent rate or higher by 2017-18
- Over half of all homes in every region of England and Wales will be subject to Stamp Duty by 2017-18, including in 306 out of 347 local authority areas
"As the property market recovers, more and more people will be sucked into paying punitive rates of Stamp Duty and it will be more expensive to move than ever," Matthew Sinclair, Chief Executive of the TaxPayers' Alliance, said.
"High Stamp Duty rates stop young people buying a home and starting a family, discourage elderly people from downsizing and make it harder to move to a new place for a new job. The Government urgently need to cut Stamp Duty and ease the burden before the situation gets even worse."
Join us on