You are here: Home - Mortgages - First Time Buyer - News -

Make sellers pay stamp duty, not buyers, says major lender

0
Written by:
21/09/2016
Stamp duty should be paid by sellers, rather than buyers, to help struggling wannabe homeowners, according to one of the UK’s biggest mortgage lenders.

Yorkshire Building Society said reforming the stamp duty rules would remove the tax burden entirely for 225,000 people getting on the housing ladder every year.

It would save first time buyers in the UK, excluding Scotland where stamp duty is no longer paid, an average of £3,791, with Londoners saving the most at an average of £13,171.

The unpopular tax is currently paid by people buying a house. The amount paid depends on the property’s purchase price. The starting threshold is £125,000 – below that amount no tax is due.

A total of 225,200 first-time buyers paid stamp duty in the 12 months to June 2016, having purchased a property above £125,000, representing 75% of all first time buyers.

Andrew McPhillips, chief economist at Yorkshire Building Society, said: “The benefits would not only be felt by those looking to get on the property ladder as anyone moving up it would be better off too.

“The Prime Minister has pledged to make intergenerational support a key measure of her Government’s housing agenda and this measure could achieve exactly that.

“This will not solve every cause of the housing crisis but reforming stamp duty could ease its effects by making homes more affordable.”

The lender said the reform would lead to an additional 16,000 property sales in the first year, including 6,000 by first time buyers.

Stamp duty generated £7.8bn for the exchequer between June 2015 and June 2016.

There are 1 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Bank of England
Interest rate cut drove mortgage sales up during traditional lull

August's 0.25% interest rate cut helped drive mortgage sales up during the traditionally slow summer period, according to figures from...

Close