A row of houses in Camden, London.
Revenue and Customs officials have announced that the government’s stamp duty revenue has fallen by 10% since this time last year.
Total revenue generated in 2017 was £2.605 billion, which decreased to £2.347 billion in the third quarter of 2018.
Philip Hammond announced in November 2017 that stamp duty would be abolished immediately for first-time buyers on all properties up to £300,000. It also promised that stamp duty would be just 5% on property values up to £500,000.
The new stamp duty is thought to be a big help for first-time buyers in the UK. According to HMRC, 58,000 first-time buyers saved £142m in the third quarter of 2018.
“The stamp duty exemption is perhaps one of the most successful initiatives to get more buyers onto the housing ladder, providing a financial lifeline to around 200,000 first-time buyers and To date, we have helped save an incredible £400m,” said Sean Church. , from Mortgage Broker Private Finance.
Ben Hudson, of York estate agent Hudson Moody, said: “Since we changed the stamp duty levels, it’s certainly helped first-time buyers and made things a bit cheaper in the lower end of the market.” . However, in the second home and investment market, the 3% additional tax rate has a significant impact. ”
A 2017 report from the London School of Economics said the tax “cheats” the market and prevents older people from downsizing their businesses.
