Andrew was bitterly disappointed for first-time buyers and people on low incomes after the level at which Stamp Duty is paid was, once again, frozen by the Chancellor in this year’s budget.
Andrew Messenger said: "At present, the first band of Stamp Duty is charged at 1% on properties over £60,000. You will appreciate that, because of the rise in house prises in recent years, virtually every property now qualifies for Stamp Duty. I believe this is utterly wrong and unfair."
He added: "I believe it is possible that, with sufficient pressure from the general public, we can persuade the Chancellor to raise the threshold at which Stamp Duty is charged from the current £60,000 to £150,000. This would be in line with current house price inflation.
The last time the Stamp Duty threshold was raised was in 1993 when it was raised to its present level. Stamp Duty has been frozen at this level now for 11 years despite the increase in house prices. This means that almost everyone now purchasing a house is now penalised Stamp Duty.
Andrew Messenger will head the West Brom’s campaign, which has already seen 3 banners unveiled outside the main Headquarters of the West Brom, advertising support for the campaign with a website address www.westbrom.co.uk for supporters to read the issues and then sign a petition on-line
To support the campaign it means:
By early May –
Petitions available to be signed by customers and staff in each of the West Brom 48 branches.
Posters in West Brom branches highlighting the issue. These will be made available to organisations who wish to support the campaign.
Seek support from business organisations, such as the Birmingham and Black Country Chamber of Commerce.
Obtain support from fellow building societies and other mutuals, estate agents, solicitors and insurance companies.
By July –
Petition forms sent out to West Brom members prior to the Society AGM.
Lobbying of local and national MP’s and Ministers to support the campaign.
By the end of the year.
Petition handed in to Downing Street prior to the Autumn Budget announcement.
The ‘Raise the Roof’ campaign will continue beyond the autumn if the Chancellor fails to make an announcement regarding the abolition or raising of the threshold on Stamp Duty in his pre-budget statement.
Stamp Duty
At present, anyone who buys a house over £60,000 will pay 1% stamp duty. The average price of a house in the West Midlands is £130,000. Should a property be purchased at this price, it means that, as well as paying for the price of the property, the purchaser will also pay a further £1,300 in tax or Stamp Duty.
The rates at which Stamp Duty is charged are:
1 per cent on £60,000 to £250,000
3 per cent £250,000 to £500,00
4 per cent over £500,000
The West Bromwich Building Society argues that Stamp Duty is unfair and unnecessary. If Stamp Duty has to be applied, it should have be raised to £150,000, in line with property price inflation, as requested by the West Brom, together with many other financial organisations, prior to this year’s budget.
He also contends that, as average house prices have risen, so this tax has swollen the Government’s coffers from £0.7 billion in 1996 to £3.6 billion in 2003.
Andrew Messenger said: "In 1997, when this Government came to power, 70 per cent of first time buyers were exempt from stamp duty. By 2003, this figure had fallen to just 24 per cent. As house prices rise so too does the percentage of people who qualify to pay stamp duty, regardless of their income."
He added: "At this rate soon everyone wishing to buy their first home will have to pay Stamp Duty. I have to ask Gordon Brown if this is really helping people on lower earnings?"
