Uncertainty lingers for buyers as government weighs property tax changes
Homebuyers in the UK have contributed £9.3 billion in Stamp Duty between January and August this year, according to an analysis by Coventry Building Society of new HMRC figures.
This new total represents a 20.6% rise compared to the £7.7 billion collected during the same period last year.
In August alone, Stamp Duty receipts totalled £1.3 billion, slightly down from £1.4 billion in July. The July figure may mark the high point for the year, as discussions about potential reforms have gained momentum.
Reports first surfaced in mid-August suggesting that the government might abolish Stamp Duty in the upcoming Autumn Budget, replacing it with a new tax on sellers of properties valued above £500,000.
Recent reports indicate that ministers are also considering allowing buyers to pay Stamp Duty in instalments, spreading payments over several years rather than making a single upfront payment. While this could reduce the immediate financial burden for purchasers, it may also introduce further uncertainty, potentially leading some to postpone transactions.
The Autumn Budget is scheduled for Nov. 26.
“Nobody wants to be the last one to pay the old tax,” said Jonathan Stinton (pictured right), head of intermediary relationships at Coventry Building Society. “If people think they could save thousands under a new system, or even spread the cost over time, some may choose to hold off buying until there’s more clarity.
“The idea of shifting the burden from buyers to sellers, or allowing staggered payments, would be a significant shake-up, and for many buyers, it would remove one of the biggest barriers to owning a home. But speculation can make the housing market hold its breath for a minute while people wait to see what happens.
“Any reform needs to be carefully thought through to avoid any unintended consequences. Passing the tax to sellers could make people at the top of the chain think twice about moving, while staggered repayments could affect how much people can borrow. Reform has to strike the right balance so that it supports buyers, keeps sellers in the market, and helps the housing market keep moving.”
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