Change stamp duty
Stamp duty should be paid on the difference between house prices when moving home not the total price of the new purchase.
Essentially I feel that the stamp duty system discourages economic mobility.
The desire to move to the right area is reduced by the burden of stamp duty.
For example if I got a new job in Sheffield and wished to move from Manchester the stamp duty would be applied even if my current house is exchanged for another house of equal value. Many houses are valued at over 250,000 and as such the cost would be £7500 at 3%.
That is a huge financial burden for a move that had no real improvement in property value.
In summary I feel stamp duty should be applied on the net difference in property prices. It should remain on all first properties and second homes.
Why does this idea matter?
- Increase mobility
- More dynamic workforce
- Increase house sales in a depressed market