Budget 2020 will be delivered exactly a month from now and changes to stamp duty are predicted to be one of the big announcements despite that stamp duty did not feature in the Queen’s Speech upon the opening of parliament.
The substantial majority now held by the Conservatives after December’s landslide election makes it almost certain that they will succeed in pushing through any such significant change should they propose it.
But, what might a change to stamp duty look like? Upon announcing the date of the coming budget, Chancellor of the Exchequer Sajid Javid said his immediate plans included “delivering on the Government’s promises on tax”.
Firstly, this could mean that the HM Treasury team could deliver on Boris Johnson’s election promise to reform stamp duty, with it being possible that no stamp duty will be payable on house sales under £500,000. This may have a particular impact on pricing of properties either side of the threshold with a possible handicap for properties in the £500,000 – £600,000 bracket in the immediate term.
Perhaps this bid to stimulate the market and get the ‘stay-put’ generation on the move will encourage those existing homeowners looking for more space to vacate instead of renovate and release more smaller lower entry point homes back to the market that are suitable for those looking to make their first leap onto the housing ladder.
Secondly, a new approach to stamp duty could also mean that responsibility for paying stamp duty could shift from the buyer to the vendor. But this could have an impact on sales incentives currently offered by a lot of mainstream developers, therefore creating a need for some more inventive closing and marketing tools.
House Marketing can help property companies prepare for and respond to significant changes in the regulatory and economic environment so that they are proactive in marketing approach. We keep abreast of the latest property news and announcements so that we can help our clients craft solutions that will keep pace with changing market conditions.
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