Recent research from Move with Us, home of the largest network of independent estate agents, has uncovered early signs of how the recent Stamp Duty reforms have affected the property market across the UK.
Twenty-seven per cent of estate agents have noticed that property prices have risen past old Stamp Duty thresholds. This was followed by 25% of agents that have observed demand from buyers has increased and 23% noticed the changes have encouraged more new listings.
When agents were asked if they support the new reforms, 47% wholeheartedly support them and 42% support them but feel there’s room for more improvement.
Under the new Stamp Duty reforms home buyers now pay a tiered rate of tax on the proportion of the purchase price that falls above each threshold. For example on a £275,000 house buyers pay £4,500 less tax than under the old, flat-rate system.
Simon King, Director of Move with Us commented: “Reforms to Stamp Duty were long overdue and it’s nice to see the issue being addressed. Whilst it’s still early days, agents initial opinions of how Stamp Duty has affected the property market signal growth and stimulation, which is what the reforms were intended to do.
“There may still be room for improvement to the tax as some agents have still noted bunching around Stamp Duty bandings. Perhaps increasing the tax in smaller increments of 0.5% would resolve this.”