EXCLUSIVE: ‘Cut or scrap stamp duty’ say backbench MPs… but not for landlords

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Tory MPs are urging the government to cut or scrap stamp duty in a bid to save homebuyers thousands – although their proposals don’t extend to landlords, LandlordZONE can reveal.

Kevin Hollinrake, a member of the Treasury select committee and founder of Hunters estate agent, says stamp duty is a “disincentive to transact, which is bad for the economy” and suggests the initial £125,000 threshold could be axed, effectively making the pandemic stamp duty holiday for lower-value homes permanent.

However, although he believes the current surcharge is fundamentally wrong, Hollinrake is unsure whether landlords should be included in any potential shake-up by the Treasury, he tells LandlordZONE.

“Landlords do a very good job, providing accommodation for lots of people but this is a tricky area – I’m on the fence,” he says. “It needs to be looked at, but this is not a fully worked out proposal.”

Zero-rated

Rising house prices mean 1.2 million homes that were previously zero-rated now require buyers to pay stamp duty after moving above the £125,000 threshold, meaning they face 2% tax on any purchase funds above that amount.

According to a report in The Telegraph, a further 3.1 million have been dragged into higher stamp duty brackets, paying between 5%-10%.

First-time buyers – who will also have to raise an extra £4,000 for a deposit compared with two years ago and an additional £5,000 in annual household income to secure a mortgage – will be hardest hit, according to analysis by Zoopla.

Meanwhile, the Treasury has collected £18.6 billion in the year to March 2022, an increase of £6.1 billion despite the stamp duty holiday during the pandemic.

Sir John Redwood MP and Greg Smith MP have also called for changes to the current tax system.

Read more: Scrap the 3% stamp duty surchage says NRLA.

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