Industry calls for govt to revisit stamp duty end date
HMRC: Stamp duty receipts increased 1% in 2019 to 2020
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October 30, 2020Residential stamp duty receipts stayed broadly flat between 2018 to 2019 and 2019 to 2020, increasing by only 1% from £8,370m to £8,420m, figures from HMRC show.
London accounted for the lions share of receipts in 2019 to 2020 making up £4,400m or 38% of the total.
Properties valued at £250,000 or less accounted for 59% of all transactions, and 11% of the total receipts, whilst properties over £1m accounted for 3% of transactions and 44% of the total.
Nick Leeming, chairman of Jackson-Stops, said: “Statistics released today from the HMRC show receipts from duty charged on residential transactions increased by just 1% in the year to April 2020, while transactions fell by 1%.
“Next year’s transaction figures however are likely to show a very different picture. Currently, hundreds of thousands of buyers and sellers are rushing to beat the impending 31 March stamp duty holiday deadline.
“There’s no denying the stamp duty holiday has had its desired effect on the market – on the ground, we’ve seen a notable uptick in activity across every branch, with sales agreed last month amongst the highest on record across the Jackson-Stops network.
“The knock-on effect an active property market has on the wider economy is hugely significant, particularly at a time when businesses need people to spend.
“Yet, with latest data from Zoopla showing that 140,000 more buyers are presently waiting to complete their property transactions compared to this time last year, this stampede of activity is now resulting in delays from mortgage advisors, with lenders and conveyancers coming under immense pressure.
“With a no-deal Brexit on the cards and both the stamp duty holiday and the current Help to Buy scheme soon coming to a close, there needs to be urgent measures put in place to prevent another cliff edge.
“Further support is needed from government to avoid a chaotic and abrupt halt in activity at the beginning of next year and keep the market moving at a time when the economy needs it the most.”
