Community secretary, Sajid Javid, has refused to change the Government’s approach to stamp duty policies recently introduced.
During George Osborne’s times as the country’s Chancellor, stamp duty rates were raised for homes worth more than £1 million. Since then, property developers and other industry experts have loudly voiced their opinion that the change contributed to a decline in house prices in Central London.
Those against the new stamp duty rules argue that it led to a stagnation in home sales at the top end, which, as a result, makes it harder for younger generations to move up on the property ladder.
When Javid was made aware of these concerns by the communities committee yesterday, he remained firm, stating that the change would only affect a small proportion of people. Those buying the most expensive properties London has got on offer.
According to City AM, he went on saying that:
“There is obviously a link between the top end of the market and the bottom end…and, as with any tax change, in time, it’s important to keep it under review. But it’s not a decision for this department.”
Any decision in relation to tax would, ultimately, have to be made by the Treasure and not the communities department.
This, however, doesn’t mean the property sector has given up. Developers are now joining forces to fight against the Government on its new stamp duty policy. They’ve created a lobby group which is putting together evidence on how the policy has affected the property market negatively and should be reversed.
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