18 Jul

Chancellor “should consider suspending stamp duty”

Chancellor “should consider suspending stamp duty”

A financial planning expert is calling on the new chancellor Phillip Hammond to consider suspending stamp duty on all purchases under £500,000.

Rachael Griffin, financial planning expert at Old Mutual Wealth, believes the move could help to boost the market following the instability caused by the recent EU referendum.

She explained: "The new chancellor could look to suspend stamp duty on homes under £500,000. With the average house price at £282,000 it could provide the required stimulus for the market during a period of exceptional uncertainty."

Ms Griffin added in 1991 a Conservative chancellor suspended stamp duty for nine months on all homes worth under £250,000 to help boost the property market - resulting in an increase in new mortgage approves from 70,000 to 90,000.

"Suspending stamp duty for property purchases below £500,000 for nine months would cost the Treasury approximately £2.6 billion. The new government may see this as an acceptable price to pay in order to keep the property market ticking over."

The previous chancellor George Osborne increased stamp duty for buy-to-lets and second properties by three per cent prior to the EU referendum.ADNFCR-1222-ID-801821969-ADNFCR

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