In my opinion, the stamp duty increases made by George Osborne were largely politically motivated and one suspects that the present government is concerned that in reducing stamp duty, particularly for the more expensive properties, they will be criticised for helping their rich friends.
I suspect all successful businesses make business decisions on the basis that they seem to have limited opposition and perhaps this is the time for them to show some backbone.
After 35 years in the business, I am convinced that most of my property colleagues are professional and reasonable people. And yet there does seem to be a lot of anger.
Often a short message is more successful than a long one. Steve Norris’s recent comments are a case in point: “The current system fails the market on so many levels,” he remarked. “It has immobilised middle-class Londoners.” For them, extra stamp duty is like “throwing the money down the drain”. “It comes out of your equity and it’s gone, worthless to you and of no interest to your lender. At that rate I don’t know why anybody bothers moving - and the fact is that many don’t.”
If politicians spoke to people, they would appreciate how much revenue they are losing
Politicians need to consider their credibility. You can’t talk about an aspiration nation, tax alcohol, tobacco and fizzy drinks because they are bad for you, then set draconian rates of tax on the property market, which is seen as a soft touch.
Many people, including myself, have been telling the exchequer for years that they should be generating more revenue from stamp duty than they were, and now, if the figures are genuinely coming down (which is no surprise to any of us), they are guilty of a dereliction of duty.
As your main article states, it is clear that this is not a campaign on behalf of wealthy people seeking to lower their tax bills; it’s one born out of concern for the housing sector and public finances.
Call Off Duty
A dedicated survey is ready and waiting to receive your comments and recommendations.
Please lend us your support. Add your voice to the industry heavyweights backing the campaign and help us put such a persuasive case to Philip Hammond that he is compelled to Call Off Duty in the March Budget.
I am from a relatively large family and I know of nobody above the age of 35 who has moved house in the last 20 years. I have parents in their 80s with a valuable house in Cambridge, who will release equity in the house rather than move. It is deeply frustrating. If politicians actually spoke to people, they would appreciate how much revenue they are losing from the lack of house sales.
Let us hope that Mr Hammond has a Damascus moment, sees a bright light and provides some encouragement to the property market, rather than smothers it.
William Wells, residential sales director, Mullucks Wells
No comments yet