Thoughts on the Autumn Budget

We were delighted to share our thoughts on stamp duty reform ahead of the upcoming Autumn Budget with luxury property journal PrimeResi.

There has been endless speculation about changes to stamp duty, capital gains tax and council tax which has created a great deal of confusion and uncertainty for buyers in recent weeks. In our view, the only proposal that has any real merit is replacing stamp duty with an annual property tax on homes worth over £500,000.

Property Acquisitions Founder and Director Jennie Hancock explains:

“An annual property tax would be an effective way of unlocking the housing market and enabling it to function much more fluidly. In the pre-stamp duty days, people were able to move up and down the property ladder as their circumstances changed, whether they were upsizing for a growing family or downsizing later in life as it suited them, without the fear of an enormous tax bill each time they transacted.

“The burden of stamp duty has been enormous, particularly in the prime market, but it discourages activity at all levels. That was clear to see during the pandemic stamp duty holiday when the market was freed from its constraints.

“An annual property tax would spread the cost and become just another bill to pay, much like council tax, which is easier to budget for compared to raising a significant lump sum at the point of transaction. It should only apply to new transactions however, or allowances would need to be made for people who have moved in recent years to ensure they avoid a double whammy of stamp duty and an annual tax.”