Overview
- Kirstie Allsopp told MPs that speculation about potential changes is leaving buyers "in a panic," pushing some to purchase larger homes than they can afford or to extend rather than move to avoid paying the tax twice.
- Press reports say Chancellor Rachel Reeves has asked officials to examine property tax reforms, including a proportional levy on sales of homes over £500,000, though no decisions have been confirmed ahead of the Budget.
- Zoopla’s Richard Donnell said about 40% of first-time buyers using its site would pay stamp duty, rising to nearly 80% in London, and he noted sales above £500,000 account for roughly 70% of receipts.
- Donnell said reduced housing turnover has a wider economic cost by lowering spending on appliances, DIY and home improvements.
- Public First’s Tim Leunig cited Help to Buy-era data showing first-time buyers often chose three-bedroom homes, arguing this illustrates how the rules distort purchasing decisions.