Deputy Prime Minister candidate, Peter Hain, claimed sellers should pay Stamp Duty to help reduce the financial burden on first-timers. Hain, the current Northern Ireland secretary, explained that moving the responsibility of payment of Stamp Duty to the seller would help to increase the supply of affordable homes.
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Speaking on BBC Radio Five Live, Hain said: “We should consider whether it would be more appropriate for the seller of a property to pay the Stamp Duty rather than the buyer. This would exempt first-time buyers from the charge. A move like this is revenue-neutral, but would be a boost to young people.”
Following revisions in recent years, Stamp Duty charges have been revised to be free on purchases under £120,000, 1 per cent of the cost of the property on the price of a home between £125,000 and £250,000, 3 per cent between £250,000 and £500,000, and 4 per cent on those above £500,000.
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Emma Partridge, press officer at BM Solutions, said: “Stamp Duty is in need of reform, so it’s good that it’s on the agenda. However, we should remember that it’s one of a number of costs affecting first-timers. We should exercise caution in suggesting that the cost is transferred to sellers. House prices can move both ways, and home owners may be discouraged from selling if they have to meet the costs of Stamp Duty alongside Home Information Packs. First-timers will not benefit if the supply of affordable housing reduces.”
