fbpx

Almost 90% of sales could have zero stamp duty says Zoopla

Almost 90% of sales could have zero stamp duty says Zoopla

One of the possible stamp duty options floated by Chancellor Rishi Sunak could mean 89 per cent of sales would be duty-free.

“Temporarily removing stamp duty for homes up to £500,000 for six months will cost the Treasury £1.3 billion” says the portal’s director of research and insight, Richard Donnell.

A six month stamp duty holiday and various changes to thresholds have been floated by the Treasury in recent days; several spoke of a half year period with no duty applied to homes prices £500,00 or below.

“The greatest benefit will be found in markets across southern England where there are more homes with average prices closer to £500,000” he explains.

The greatest beneficiaries of all would be what Zoopla regards as the affordable areas in and around London where up to 95 per cent of sales would be stamp duty free.

Donnell says Stamp duty holidays are a tried and trusted way to support housing market activity and provide an additional incentive to move home at times when the economy has been hit.

“The government would hope that the savings feeds into additional spending in the real economy with more cash spent on home improvements and white goods rather than enabling buyers to spend that bit more on their next home.”