Stamp Duty Changes, Sellers To Pay Stamp Duty?
It has been suggested that sellers should pay the stamp duty rather than buyers. This offers an interesting debate as to who should foot the bill?
For first time buyers it is becoming increasingly difficult to raise the large deposits needed to buy their first home and then on top of that they have to find the funds to cover the stamp duty. It therefore might make more sense that the seller covers stamp duty, especially as they have benefited from the rising property prices which the first time buyer hasn’t.
It would also help those trying to move up the property ladder because the increasing stamp duty costs swallow up vital funds needed to make that move worthwhile. In some instances, prospective buyers may decide to stay put and spend the money they would on stamp duty on making improvements to their existing house or even extending it.
In September, comparethemarket.com conducted a survey which found that one in every three homeowners would be more likely to move if stamp duty were removed.
Lord Lawson, commenting on the idea of whether the seller should pay the stamp duty in the Telegraph today suggested that it would be better to address it in the 2017 Budget rather than in the autumn statement.
There are a number of people behind the move including the chief executive of Taylor Wimpey and in the past it has been backed by Yorkshire Building Society.
Passing the stamp duty charges will almost certainly fuel the stagnant market but there is a train of thought that it will disincentivise sellers to put their property on the market.
The next few months will be fascinating and it will be interesting to see how the decisions made will affect the housing market over the coming years.
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