Purplebricks: Johnson’s initial stamp duty proposals would boost the market
The stamp duty proposals Prime Minister Boris Johnson pledged in his leadership campaign would greatly boost the market, according to research by Purplebricks.
Johnson (pictured) announced proposals to increase the stamp duty threshold for residential properties priced between £125,000 to £500,000, whilst lowering the top rate from 12% to 7%.
However, there has been little evidence of government intervention since then.
The research showed these changes would lead to a saving of £3.2bn in stamp duty costs for movers and an additional 131,000 house completions in the next 12 months.
Vic Darvey, chief executive at Purplebricks, said: “Reforming stamp duty is the key to unlocking growth and getting Britain moving.
“These proposals will kick start both the UK property market and the wider economy.
“This could help growing families move into bigger properties, make downsizing much more appealing for empty nesters and help first-time buyers get a foot on the property ladder.”
The reforms would cut the average stamp duty paid by owner-occupiers by an average of 63%.
No duty would be payable on 89% of home purchases.
In total, the reforms would lead to a 15% increase in owner-occupied property transactions.
This would reportedly provide a direct £1.7bn boost to the economy in move related spending.