NATIONAL ASSOCIATION OF PROPERTY BUYERS URGES CHANCELLOR TO SUSPEND STAMP DUTY FOR DOWNSIZERS

THE Chancellor should introduce a temporary suspension of Stamp Duty for those looking to downsize, a leading property association has said.

Speaking ahead of tomorrow’s Budget, the National Association of Property Buyers also urged Jeremy Hunt to steer clear of buyer incentives like 99 percent mortgages.

Spokesman Jonathan Rolande said: “This is likely to be the last Budget before the General Election, so everyone working in the property sector will be watching and listening with interest.

“We need measures to stimulate the housing market and which genuinely addresses the lack of supply we have in the current housing market.”

Explaining what measures the NAPB would most like to see he said: “We’d like to see a temporary suspension of Stamp Duty for downsizers. This would cost the Treasury something like £6000 a sale. But many of those sales will never happen unless older homeowners are gently encouraged to sell. The SDLT an inbound buyer will pay should outweigh the loss of the downsizer’s discount. The Government would gain, the downsizer would save and the buyer of their property would have the opportunity to buy a home that otherwise would not have even been on the market.

“I’d also urge the Chancellor not to introduce buyer incentives like the much talked about 99% mortgage. Increasing demand whilst supply is so low is a recipe for price increases.

“We’d support an Increase in taxes on vacant property to encourage owners to bring hundreds of thousands of vacant homes back into use. The Chancellor should tax holiday lets at a proper rate to level the playing field and encourage longer lets. I’d also like to see enhanced tax relief for good landlords who insulate their rented property. And we’d back an increase in stamp duty further for overseas buyers to try and make it easier for UK-based buyers to get the keys to their own home.”