Member Article

South Yorkshire’s stamp duty burden

South Yorkshire estate agent, Eadon Lockwood and Riddle, has revealed that that 90% of properties sold through the 173 year old business in the last 12 months were affected by stamp duty.

The firm has come out in support of the Tax Payers’ Alliance’s recently launched Stamp out Stamp Duty campaign, which calls for the tax to be cut, arguing that it would ease the burden on home-buyers and that it is simply ‘out of touch’ with today’s property market.

According to the company, stamp duty, which imposes an incremental tax on properties that sell for more than £125,000 is ‘outdated and counterproductive’ and claims that it is confusing and slowing the rate of recovery across the region. It says it would be in favour of a complete overhaul of the property tax which has not been reviewed and permanently updated since 2003.

Among changes it recommends, would be increasing the value at which a property becomes subject to stamp duty.

ELR managing director, Chris Thomson, said: “Stamp duty is a very real deterrent for many trying to get on the property ladder, upgrade or downsize. It affects just about everyone trying to buy or sell, irrespective of their income or situation.”

“We are starting to see some recovery in the housing market across the region. At ELR we have had a couple of good months, the best in a long time, but if we want to see real improvement at a sustained rate the government needs to reconsider the way stamp duty is currently calculated.”

The amount of stamp duty a buyer must pay for a property increases depending of its value.

£125-£250k 1% £250k-£500k 3% £500k-£1m 4% £1m-£2m 5% £2m+ 15%

He added: “A move to reduce the number of properties that are subject to the tax, as well as a review of how much stamp duty is paid on those still eligible would have a positive impact on every single homeowner across the region and it is long overdue.

“When people can get onto the bottom rung of the ladder others will be able to sell and move up. It ultimately has a positive knock on effect. The current system has simply not moved with the times. It is confusing, outdated and counterproductive.”

The latest research carried out by TPA reveals that four out of every five homes sold in 2012-13 will be subject to stamp duty and within five years, 40% of properties sold will be subject to Stamp Duty of 3% or more, leaving buyers with a bill of at least £7,500

This was posted in Bdaily's Members' News section by David Gatehouse .