A major schism has emerged between estate agents and homeowners over potential changes to Stamp Duty, with agents in favour and homeowners emphatically not, according to Boon Brokers boss Gerard Boon (pictured).

Research carried out by the mortgage brokerage firm found that 42% of homeowners believe the proposed SDLT changes are unfair, and another 51% would be less likely to buy property if an annual property tax replaced the current system.

The findings are in stark contrast to a recent GetAgent research, which shows 79% of agents favour abolishing SDLT outright, with 66% supporting a seller-side levy.

35% won’t put homes on market

In contrast, according to Boon’s study, 96% of homeowners believe a proposed 0.5% annual property tax would inevitably rise over time, with 21% saying they simply could not afford such a levy.

Some 35% also say they would be less likely to put their homes on the market if sellers were required to pay property tax, whilst 75% believe retired and working homeowners would suffer most under annual taxation.

The divide is particularly pronounced among older homeowners, with 71% of those aged 65-plus believing retired homeowners would be hardest hit. Some 66% of this group say an annual property tax would cause them financial strain.

An annual property tax risks undermining the natural fluidity of the housing sector rather than encouraging people to move for work, family, or space.”

In addition, Boon’s research suggests many homeowners fear “double taxation”, particularly recent buyers who have already paid SDLT and could face additional costs on properties they have purchased.

And among those aged 25-64 – the most active buyers – 52% would be less likely to purchase higher-priced property under annual taxation proposals.

Boon therefore warns that introducing an annual property tax “risks undermining the natural fluidity of the housing sector rather than encouraging people to move for work, family, or space.”

You can see the full survey results here.