Average stamp duty payments could hit £9,000 by 2015
New report suggests house prices could soar over coming years
May 9, 2013
Stamp duty on the average UK home could hit a whopping £9,000 by 2015 as house prices soar thanks to “reckless” governments schemes. A new report from Fathom Consulting has warned that schemes such as the recently announced “Help to Buy” are irresponsible and could lead to huge increases in house prices. The report claims that by pushing up demand these schemes could lead to prices increasing from £233,000 today to £300,000 by 2015. This would mean that the stamp duty liable on the average home would be an incredible £9,000.
The Help to Buy scheme was announced in the Budget earlier this year and has been designed to help people get on and move up the housing ladder with just a 5% deposit. For a full explanation check out our guide.
Andrew Brigden, a senior economist at Fathom, said: “Had we been asked to design a policy that would guarantee maximum damage to the UK’s long-term growth prospects and its fragile credit rating, this would be it.”
With home ownership at the lowest level for 25 years stamp duty needs to be reformed. It is an unfair, and perverse barrier to home ownership. The HomeOwners Alliance will be publishing our latest report investigating the rise of stamp duty soon so watch this space!