New director of the Institute for Fiscal Studies Paul Johnson says stamp duty on housing “gums up” the market and should be scrapped.
Speaking to Money Marketing, Johnson says the tax on house buys discourages people from moving. He says: “I do not think there should be stamp duty on housing transactions. It creates significant problems and gums up the housing market.
“The tax increases significantly at particular points so there are discontinuities in the amount of tax people pay. More generally, it increases the cost of selling a house, creating quite a big incentive not to move.”
Johnson says if stamp duty was removed, thought would have to be given to how to rep-lace the yield it brings in.
London & Country head of communications David Hollingworth says: “Clearly, it is an additional cost for anyone buying a home. It has got to put some people off moving.
“As it is a Government tax, removing it would mean the money would have to come from elsewhere and I do not think that would be simple but certainly an overhaul of the current system is long overdue.”