Portals, leading estate agency and Phil Spencer back Stamp Duty reform
Andrews, Zoopla, Rightmove and TV star are urging fellow agents to sign a petition that would give home buyers longer to pay the tax.
A leading estate agency has called for Stamp Duty to be reformed to allow home buyers to spread their payments over years, rather than the 14-day payments window currently enforced by HMRC.
Andrews Estate Agents has the backing of both Phil Spencer and both Zoopla and Rightmove.
They have jointly launched a petition which calls for home buyers to be given two to five years to pay their Stamp Duty and ease the affordability issues that they say are constraining market activity. The petition has been signed by 1,250 people so far.
David Powell, CEO of Andrews Property Group (main image), which has lead the lobbying effort, says: “This reform could unlock significant buyer demand currently held back by cash flow constraints.
“Our next milestone is 10,000 signatures, which would trigger a written government response and bring us closer to the Parliamentary debate at 100,000 signatures.”
Paul Whitehead, CEO at Zoopla commented “Stamp Duty is a significant barrier to moving home, limiting both house moves and labour mobility — two essential drivers of UK economic growth.#
“Our latest data reveals that over 80% of home movers and 40% of first-time buyers are now paying Stamp Duty—an increase from last year.
“This comes at a time when affordability is playing an even greater role in decision-making. Zoopla is proud to support this initiative to allow stamp duty to be paid in instalments, a change that could unlock market activity and help get Britain moving.”
Transaction volumes
Christian Balshen, Rightmove’s Director of Agency Partnerships adds: “This pragmatic suggestion could positively impact demand and consequently support a healthy market and transaction volumes.
“It is well known and generally agreed that every residential property transaction gives a boost to the economy. Initiatives which could free up more cash for homebuyers to spend on their new home can only support this.”
The problem will all this tinkering is that generally it has an adverse effect on the market. When stamp duty holidays come along, house prices rise as sellers take the stance that the buyer isn’t paying the tax man so they can squeeze more out of them in purchase price.
Spreading payments would surely affect the mortgage market as the question of affordability comes into play as far as the providers are concerned?
Stamp duty is a tax that every government has tinkered with for many years and never got it right, what the answer is I do not know but stability for a while would be good.