Mayor of London Boris Johnson has called on George Osborne to exempt London homes from stamp duty.
During his speech at the Conservative party conference yesterday, Johnson railed against the “baleful” effects of the tax on London’s housing market.
Johnson said that the tax, levied on homes bought for more than £125,000, was “stamping on the fingers of those trying to climb the housing ladder”.
Currently stamp duty is taxed at 1% for homes purchased for between £125,000 and £250,000; at 2% for purchase prices between £250,001 and £500,000; 4% between £500,001 and £1 million; 5% between £1 million and £2 million and 7% over £2 million.
Homebuyers in the capital paid a record £2bn in stamp duty to the Chancellor last year, making up more than 40% of the national total.