Boris Johnson is considering dramatic changes including abolishing the levy on homes worth less than £500,000
A major overhaul of stamp duty to boost home ownership and reinvigorate the property market is being planned by Boris Johnson.
The new Prime Minister is considering dramatic changes including abolishing the levy on homes worth less than £500,000 and making sellers pay, not buyers.
He has also promised to help ‘cheated’ leaseholders so they are no longer trapped in properties that are unsellable or unmortgageable because of spiralling charges.
The shake-up could come as soon as September when the new Chancellor is expected to hold an early emergency Budget, instead of waiting until October or November.
Mr Johnson has told MPs an overhaul of stamp duty is needed to help first-time buyers get on the ladder and to give the London property market renewed energy.
He said: ‘I believe that, in this fantastic capital city of Europe and of the world, stamp duty is choking the market at the moment.
The shake-up could come as soon as September when the new Chancellor is expected to hold an early emergency Budget. Pictured is Boris Johnson posing for selfies with supporters in Birmingham today
‘We need to think about the way it is working and to see what we can do to free it up and give more people the chance of home ownership.’
One proposal being looked at would raise the property value at which stamp duty is charged from £125,000 to £500,000. An extra 300,000 property buyers would no longer have to pay the levy, meaning nearly three-quarters of all home sales would be exempt.
And the Prime Minister is examining whether to lower the top rate of stamp duty on the most expensive homes valued over £1.5million from 12 per cent to 7 per cent – reversing a change made by George Osborne.
An even more radical measure to switch the liability for paying the levy from the buyer to the seller is being considered. First time buyers are already exempt from paying the charge on homes bought for less than £500,000, but this would remove them from the system entirely.
Mr Johnson said: ‘I believe that, in this fantastic capital city of Europe and of the world, stamp duty is choking the market at the moment.' Pictured is Boris Johnson posing for selfies with supporters in Birmingham today
Proponents argue the change would help buyers move up the property ladder as they would be paying the duty on the house they are selling rather than on the usually more expensive one they are buying. But it would negatively impact property owners looking to downsize.
Mr Johnson has also told MPs that he will tackle the ‘injustice that many leaseholders have been facing’.
Mr Johnson has also told MPs that he will tackle the ‘injustice that many leaseholders have been facing’. Pictured is Boris Johnson meeting supporters in Birmingham today
Leasehold house owners are often charged ground rents that in some cases have risen to such high levels the properties have become unsellable and unmortgageable.
Campaigners have been calling on ministers to put an end to leaseholds altogether. Policing minister Kit Malthouse yesterday said a Budget would be held in the autumn to boost the economy, although it is yet to be confirmed by the Treasury.
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News Photo Boris Johnson plans stamp duty shake-up to boost home ownership and kick-start the property market
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