We're on the case
We believe the Stamp Duty levels in the higher end property sectors are holding back the entire market, and producing less tax revenue for the Government! A lose, lose for everyone.
It is easy to assume this has no impact on the main stream property sector, but it does. High levels of stamp duty created a disincentive to move home, thus reducing the level of top end house sellers coming to the market and cutting off the house stock resources which normally drives house buyers to trade up. Result, a net negative impact on tax revenue and less housing stock on the market with resultant lower volumes of sales.
At the top end of the market (£2.0m. plus) the 2015 actions of George Osborne on hiking stamp duty levels directly caused a downturn in house sales activity and productivity. The populist political stance of clobbering the wealthy with increased stamp duty levels resulted in less revenue for HMRC, so this political and misjudged gesture resulted in less wealth for the UK in tax receipts. Overall there is speculation that the loss in tax revenue from stamp duty changes could be as much as £1bn. by the end of the financial year (source Property Wire).
That just leaves one question to be answered. Will new Chancellor Philip Hammond reverse this by ditching the policies of his predecessor George Osborne?