House growth is at the lowest level in years due to fears from Brexit impacting the housing market. The UK house market is currently sitting at 0.7% growth according to the Land Registry, London has been hit the hardest with the largest drops in value.
HM Revenue & Customs have reported a 10% decrease in stamp duty between 2018 and 2019; a drop of over £900 million to £8.4 billion.
The uncertainty around Brexit is causing families to delay moving house. According to The Telegraph, the most rich individuals aren’t buying, and foreign investors are staying away.
The drop in stamp duty is causing concern over how the Government will afford all the tax breaks they have promised. The decline is partially caused by first-time buyers not needing to pay it, but along with the drop in stamp duty in Wales, this counts for less than half of the percentage drop in stamp duty collection overall.
Some may be delaying moving house as they don’t wish to pay stamp duty when the decreasing growth of the housing market means they may receive less from selling their current home.
Another cause of a drop in stamp duty collection is because of the 3% surcharge on second homes. Introduced in April 2016, this was intended to tax landlords, however it also taxes families moving home but yet to sell their current house. These families must pay the additional tax and apply for a refund within 36 months – not something everyone could afford to foot up front.
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I began writing for Property Press Online in October 2019. Particular areas of interest are housing market news and new developments in the market.