A poll which was launched by Estate Agent Today has revealed that 78% said that a Stamp Duty cut would help the property market, while 15% said it wouldn’t – with more than 500 readers responding.
The Conservatives are considering the possibility of reducing stamp duty in their upcoming general election manifesto if the economy shows signs of improvement. According to sources cited by The Times, they are contemplating either cutting stamp duty or completely abolishing inheritance tax.
A senior Conservative party member highlighted that reducing stamp duty would be seen as an “aspirational” move and could have a positive impact on the economy while also attracting middle-class voters who have drifted away from the party.
Estate Agent Today also reported that DJ Alexander Ltd – the largest estate and letting agency in Scotland – said “such a move would be welcomed by buyers and the property sector at a time when there was a softening of demand in the market”.
As it stands, stamp duty in England and Northern Ireland is set at 5% for primary residences valued between £250,001 and £925,000, increasing to 10% for properties priced between £925,001 and £1,500,000.
The pressure to announce tax cuts before the next election has intensified, as recent figures indicate that government borrowing was lower than anticipated in the previous month. This improvement is attributed to a substantial reduction in the Treasury’s debt interest expenses and strong tax receipts. Official data reveals that public sector net borrowing for the last month was £14.3 billion, which is below the Office for Budget Responsibility’s forecast of £20.5 billion.
