Boris Johnson the front runner has announced that he will cut stamp duty for all house sales under £500,000.
He also laid out plans for an emergency budget that will include heavy tax cuts and an overhaul of the stamp duty regulation.
If he were to become the next British prime minister, he has pledged to raise the annual investment from the current limit of £1m.
Camilla Dell, Managing Partner at Black Brick, a leading London buying agent said, “A move to reverse the Stamp Duty increases put in place by George Osborne, when the top rate increased from 7% to 12%, would be very good news, particularly for the London market which has been suffering from an onslaught of tax hikes on property since the end of 2014.
“There is now clear evidence that the Stamp Duty increases have started to dent the tax take.” Stamp Duty receipts in England and Northern Island fell by 19% in the first quarter of 2019 compared with the same period in 2018.
“We would welcome a review of current property taxation, particularly the 3% surcharge and proposed 1% additional charge on foreign buyers, which has had the effect of pouring glue into the market and resulting in a dramatic fall in the number of transactions happening on an annual basis.”
Dell added, “Furthermore, a move to cut Stamp Duty on homes below £500,000 would clearly benefit the first-time buyer market. In our opinion, this should only apply to first-time buyers and not investors,” she says.
“However, the market needs to treat promises made by Boris Johnson as he seeks election, with real caution.”