NAEA Urges Chancellor to Revise Stamp Duty and Make Green Policies Smarter
Stewart Lilly, President, National Association of Estate Agents (NAEA) is calling on Chancellor Alistair Darling to use the March Budget to ease the immediate problems facing people in the housing market today.
With first-time buyers being priced out of the market at the bottom end the NAEA is calling for a revision to Stamp Duty and is proposing a new scale. It is also concerned that buy-to-let investors are being left out in the cold on Capital Gains Tax, which should be revised to create a better incentive, thus enabling investors to buy and sell property more easily, creating fluidity and variety in the market.
We propose a Stamp Duty scale based on a series of thresholds similar to income tax, so for example, for a property worth £250,000, the first £200,000 would be under the Stamp Duty limit, meaning Stamp Duty would only be levied on £50,000 at 1% = £500. Suggested Stamp Duty thresholds:
- Up to £200,000 – 0%
- £200,001 to £300,000 – 1%
- £300,001 to £450,000 – 2%
- £450,001 to £1million – 3%
- £1million and above – 4%
- £2 million and above – 4.5%
“The government needs to be aware that with inflation rising consumers need a helping hand. We would like to see a scale of stamp duty that reflects the house price inflation in recent years. We would also like to see a revision of Capital Gains Tax for buy-to-let investors who are fast becoming the back-bone of the private rental sector,” says Stewart Lilly.
Lilly is also calling for VAT-free green policies. These include no VAT on eco products – to promote energy efficiency and sustainability in the home – and lower tax on building conversations to match new-build status. This would play an important role in encouraging the regeneration of old buildings and reduce the UK’s carbon footprint.
“We would like to see green policies made more accessible to the average consumer. By implementing simple measures such as introducing VAT free /lower tax green policies it can only encourage people to introduce more energy efficiency into their existing homes to encourage people to introduce energy efficiency and renovate and regenerate older properties, rather than measures with big words and little substance like HIPS and carbon zero homes, we believe this government could see real results,” continued Stewart Lilly.
The NAEA would also like to see greater emphasis and further planning reforms to ensure that sustainable communities are built and to encourage the spread of affordable housing across the UK.
“We would like to encourage more balance in communities – especially rural communities – that have for some time lacked the proper investment to get the right mix of properties in the right place and at the right price with the services to match.
“We believe that together with Stamp Duty reform, reduction in buy to let Capital Gains Tax and a greater emphasis on real green policies that work the government can make a big difference to the housing market,” concluded Stewart Lilly.
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