Stamp Duty Changes - Our View
The debate around the proficiency of the UK’s stamp duty system has been a big talking point as of late. Thankfully the key issue of price banding is addressed in these changes, and will remove the distortion from artificial ceilings that had formed, leading to more representative market prices. The changes will provide a boost to the already highly liquid lower end of the market. It is also likely that the £1m-£2m market, which will be the most likely to feel the negative side of these amendments, will to an extent be soaked up by vendors until the market has time to adjust to the new structure, meaning demand is unlikely to temper much in the interim. From a political point of view, this should take much of the sting out of Labour’s proposed mansion tax proposal, as the recent changes represent a significant redistribution of the stamp duty burden.