Research from Academics at LSE suggests that Stamp Duty is reducing the rate of home moving by nearly a third. Since the December 2014 reform of Stamp Duty land tax, owners of larger, more expensive homes are facing much higher Stamp Duty land tax of up to fifteen percent which is thought to significantly hamper housing mobility and discourage owners of larger houses from moving. This is creating a bottle neck, preventing owners of smaller properties from up-sizing and moving up the housing ladder.
Previously, it was thought that the housing crisis in England could be resolved by increasing the number of new homes built, but now it seems that easing stamp duty could also prove a solution.
Whilst ministers may be hesitant to reduce or abolish stamp duty land tax – property taxes account for over 10% of total taxation in the UK – home sales have decreased by 11% since the December 2014 reforms but research suggests home moves could increase to 27% if Stamp Duty was abolished.
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