Property sector calls for stamp duty reform

Professionals in the property sector are calling on the Chancellor to use this autumn’s Pre-Budget Report to announce a radical reform of stamp duty.

Bodies including the National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA) have labelled the stamp duty system ‘anachronistic’ and a ‘tax on aspiration’.

The NAEA and ARLA are demanding a shake-up of the current ‘slab’ structure, which they believe unfairly distorts the UK property market and the prices around the existing stamp duty thresholds.

In its place the organisations want to see a ‘slice’ or progressive system, which is index-linked to inflation.

Other suggested reforms include a complete suspension of stamp duty during the housing downturn, and an increase in the starting threshold to well above the current £175,000 as an aid to first-time buyers.

Peter Bolton-King, NAEA chief executive, said: ‘Stamp duty is a barrier to entry for many first time buyers and is also prohibitive for those looking for a step up the property ladder.

‘The time has come to re-assess Britain's most unpopular tax, which is a levy on those aspiring to own their own homes and is manifestly perceived by all those who pay it as being unfair and punitive.’