Stamp Duty Changes Result in Half Million Less Home Sales
According to new research from the Cebr think tank the gradual increase made to stamp duty by Gordon Brown during his tenure as Chancellor have meant almost half a million fewer people have moved house.
Myfinances.co.uk reporting on the research point out that since 1997 the amount of money raised by stamp duty has increased from £675 million to around £7 billion in the current financial year and calculated stamp duty changes mean the number of property transactions has fallen by 498,000 over the decade.
The government introduced new, higher, bands for stamp duty when it came to power initially seeing the tax double to two per cent of the value of more expensive homes. As well as the increase in the amount of tax charged, rising house prices meant more and more homes were becoming liable for the tax and the higher thresholds of the tax.
Cebr chief executive Douglas McWilliams said"If you tax something, it normally affects people's behaviour.......And so housing transactions have run consistently below their levels during the 1980s housing upturn."
Myfinances.co.uk reporting on the research point out that since 1997 the amount of money raised by stamp duty has increased from £675 million to around £7 billion in the current financial year and calculated stamp duty changes mean the number of property transactions has fallen by 498,000 over the decade.
The government introduced new, higher, bands for stamp duty when it came to power initially seeing the tax double to two per cent of the value of more expensive homes. As well as the increase in the amount of tax charged, rising house prices meant more and more homes were becoming liable for the tax and the higher thresholds of the tax.
Cebr chief executive Douglas McWilliams said"If you tax something, it normally affects people's behaviour.......And so housing transactions have run consistently below their levels during the 1980s housing upturn."
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