The head of a property services group has launched a government petition to allow home-buyers to spread stamp duty costs over two to five years, instead of paying the full amount within 14 days.
David Powell, CEO of Andrews Property Group, believes offering buyers the choice between paying in full or spreading the cost over a number of years will reduce the upfront barriers to home-ownership.
‘We think the 14-day SDLT payment requirement creates affordability barriers for first-time buyers and homeowners’, Powell wrote in the petition.
The proposed scheme would be similar to HMRC installment plans, Powell suggests, with flexible payments reducing the heavily loaded upfront costs of buying a home.
‘Buyers may have to save extra funds, on top of deposits, or increase mortgage borrowing, which could reduce purchasing power,’ he said.
“We think short term solutions, such as temporary rate cuts create pressure for all parties in the moving process. We think a flexible payment scheme would be a sustainable solution, it would address affordability, while maintaining tax revenue, and improving housing market mobility.”
The petition has been launched on the official UK Government and Parliament website and will run for six months. All petitions that reach 10,000 signatures will receive a government response, with those signed by 100,000 people considered for debate in Parliament.
2 responses
So would the SDLT5 after the final payment is made? In which case, how would the property be registered without the SDLT%? What is the buyer decides to sell before full payment is made and they are not yet the registered proprietor?
So will Land Registry register without an SDLT5? If not, what would happen is a buyer decides to sell before SDLT is paid in full and the title registered? What I silly suggestion!