Boris Johnson and the Stamp Duty Land Tax
20th August 2019
20th August 2019
While this might sound like the title of a somewhat bland fairy tale, it is an interesting avenue to explore. We are always interested to hear about peoples' plans for the Stamp Duty Land Tax (SDLT) as it impacts on our customers property options so heavily.
As the leading independent estate agent in Beaconsfield we have properties of all variations in our portfolio; from ideal first-time buyer flats to large mansions so we see the full spectrum of people and budgets, and the STLD has a considerable impact on a buyer’s affordability.
The New Prime Minister
When Boris Johnson became the new PM, he outlined his plans for an emergency budget which would significantly cut stamp duty and potentially reignite a stumbling property market. While he might not be particularly popular on social media (or the House of Commons) some of his plans could benefit existing and potential homeowners.
Currently, only properties priced under £125,000 (for all existing property owners) or £300,000 for first-time buyers are immune from SDLT. The PM has hinted at scrapping Stamp Duty on properties valued at under £500,000 in a big overhaul of the SDLT thresholds. This would mean that the new threshold could almost double the UK’s average property price which is currently £246,728.
Most research into the scrapping of SDLT focuses on the impact a complete cut would have on stamp duty receipts and the economy. The latest research conducted by Ludgrove has used an estimate of indirect taxes to provide a more accurate assessment of what a cut could mean for total tax revenue.
Ludgrove’s analysis suggests that a 35% reduction in all SDLT rates could glean an incredible 40% increase per year in England alone. Which would generate an extra £9.8 billion in tax and business revenue for the economy.
We are certainly in support of anything which will stimulate the property market. The change in SDLT thresholds in 2017 didn’t really benefit buyers in the south of England as much as it did for those up north where house prices are lower. This new proposal could be just what people who are currently priced out of moving are waiting for.
Get in Touch
If you are looking to buy or sell a property in the Beaconsfield area make sure you come and speak to a member of our team about your property options, you can give us a call on 01494 680018 or email us. You can also find properties for sale in Beaconsfield on our website and follow us on Facebook, Twitter, Instagram and LinkedIn for all the latest updates.