Britain’s stamp duty take has reached a new high of £11.7 billion, leading estate agents to ask for more protection for the sector as a significant source of tax revenue.
Over the last five years, the amount of money made by the Government through property transactions has increased by 70%, up from £6.9 billion.
London estate agents Ludlow Thompson even state that, over the last twelve months alone, the tax has grown by more than £1 billion. The rise in tax revenue shows the noticeable effect the three per cent increase of stamp duty really had.
Now, estate agents are speaking up to warn the Government not to expect these increases in tax to stick around in the long-run. Particularly when considering the uncertain times ahead of the country, with Brexit and the snap General Election only being two of them, investment levels may not always remain so high.
Not unless they’re being supported or safeguarded in some way.
Stephen Ludlow, chairman at Ludlow Thompson, said:
“The record high take shows just how dependent the government is becoming on stamp duty land tax. Its manifesto needs to have policies in place that will help the property market if they are going to rely so heavily on the take from stamp duty land tax.”
However, despite the industry fighting hard, the Government has shown no interest in adjusting changes made to stamp duty last year.
Sajid Javid stated last week that it would be wrong to see the increased stamp duty rates as a change impacting the whole market and rather a regulation on the high end of the market.