Thursday 9 November 2017
Review Stamp Duty at the Budget to underpin London's economy
The impact of Stamp Duty on London’s property market should be reviewed says London Chamber of Commerce and Industry (LCCI).
Stamp Duty Land Tax was reformed in autumn 2014 by former Chancellor, George Osborne.
Now LCCI says the Treasury should undertake a review of the impact of those reforms on the capital’s housing market – and the wider London economy.
LCCI believes the reformed system which reduced the amount of stamp duty paid on 98% of purchases, while welcomed by many throughout the country, disproportionately impacts London given the profile of property in the capital.
Estate agents have reported a fall in sales of properties in the higher £1.5million bracket - as well as a reported increase in top end renting rather than actually buying.
Chief Executive of LCCI, Colin Stanbridge said: “There have been various reports of the top end of the London property market slowing down – and the reason behind that need to be examined.
The reforms of late 2014 were introduced in a very different political and economic landscape. Since then we have had two General Elections and, most crucially, the decision to leave the EU.
It is important to learn why there may be a reluctance for some buyers to enter into high value transactions.
The Treasury will be well aware that top end housing activity delivers more than just tax – there are numerous associated benefits to the wider economy with the services of lawyers, surveyors, designers and builders all experiencing significant business.
If the top end of the housing slows then a corresponding reduction in such business and commerce may result.
“The Chancellor should use the opportunity of the Budget on 22 November to commission of the impact of Stamp Duty on London’s property market and the wider economy of the capital”.
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NOTES TO EDITOR:
1. London Chamber of Commerce and Industry (LCCI) is the capital's largest and most representative business organisation, with members ranging in size from multi-national companies to SMEs and sole traders.
2. Colin Stanbridge, Chief Executive, is available for further comment and interview.