Kirstie Allsopp calls for stamp duty to be abolished in Reeves’ Budget
Kirstie Allsopp told MPs she thought stamp duty should be abolished, arguing it was hurting the housing stock for first-time buyers.
The Location, Location, Location presenter told the Treasury Committee hearing that he believes property taxes are pushing young people to buy homes they can’t afford and expand into smaller homes rather than moving into larger dwellings.
Ms Allsopp joined Zoopla chief executive Richard Donnell and Professor Tim Leunig, director of consultancy Public First, on a panel of experts to speak to MPs about their views on stamp duty on Wednesday.
When Ms Allsopp was asked whether she thought stamp duty should be abolished, she said: “I do.”
Asked if he had seen speculation about stamp duty changes affecting behavior in the housing market, he said: “I see it all the time… What I see is young people buying more expensive homes than they can actually afford because they know they can’t pay stamp duty twice.
“Another thing I see very often is people swapping two- and three-bed homes instead of moving because the cost of moving is too high.
“I think we’re actually hurting our first-time buyer housing stock because of stamp duty.”
Asked if stamp duty speculation was currently having a significant impact, he said: “Yes, that’s definitely what I’m seeing; people are panicking about it because taxes have gone up and they think they might go up again. There’s a lot of speculation in the press.”
His comments come as the Treasury Committee investigates a range of potential property tax changes tabled to chancellor Rachel Reeves ahead of the 26 November Budget.
Stamp duty is a tax imposed on property purchased in England and Northern Ireland. Rates vary depending on factors such as if you are a first-time buyer, purchasing an additional property or are not a UK resident.
The controversial tax has faced opposition from politicians and experts alike. Dan Neidle, founder of Tax Policy Associates, called the tax a “confusing mess.”
Professor Leunig told the Treasury Committee that the point supporting Ms Allsopp’s case against stamp duty was that: “The most ordinary-sized property purchased by first-time buyers under Help to Buy had three bedrooms.
“And it’s very strange, because a three-bedroom house, especially a new three-bedroom house, is usually a pretty expensive proposition.
“And people do that because then they only have to pay stamp duty once and they only have to buy it at the first-time buyer price.
“One of the big problems with the first-time buyer low rate is that it discourages you from buying a cheap property for the first time because you don’t get much benefit and then you lose your right to that benefit.”
Ms Allsopp has previously called it a “terrible little tax that catches people out at the toughest stages of their lives”.
