Propertymark: Reforming the property taxation system

Propertymark called for a review of property taxation to boost Britain’s economy in our response to the 2021 Autumn Budget and Spending Review.

Stamp Duty Land Tax (SDLT)

The rates and values for SDLT have not been reviewed since the tax was reformed during 2014, when average house price and wages were very different to the landscape today.

Market demand, sales and average prices have all risen since July 2020.

Between July 2020 and August 2021, Propertymark members reported an increase of more than 100 new buyers per branch, per month during the SDLT holiday, with nearly one in five homes being sold over the asking price.

During the same time frame, 45 per cent of monthly agreed sales were less than the asking price as opposed to 80 per cent in the 14 months prior.

Stamp duty review

Propertymark has urged action and funding across key areas to help unlock the potential of the property industry as well as support the levelling up of our country and communities after the impact of the pandemic.

As well as calling for a review of the current SDLT system, we have also highlighted how a roadmap would help reaffirm policy objectives and ensure the land transaction tax system is fit for purpose and relevant in a post-COVID-19 society.

Kindly shared by Propertymark

Main article photo courtesy of Pixabay