New property taxes must be fit for purpose, Propertymark recomm

Propertymark has highlighted that any future changes to the current Stamp Duty system across England and Northern Ireland must be carefully considered, fit for future purpose, and encourage the concept of homeownership for those who aspire to it. Proposals for a 'proportional' property tax regime must be wisely measured in alliance with key industry stakeholders and deliver a dynamic approach in terms of supporting the property ownership journey.  Any revised system must assist first-time buyers, second steppers and those looking to right size.  This call is in response to reports stating that the UK Government is contemplating a fresh tax on the sale of homes worth more than £500,000 alongside a comprehensive review of council tax.  Senior ministers have been informed about the proposals ahead of the next Autumn Budget, as Chancellor Rachel Reeves anticipates that tax increases will be needed to bring in additional revenue.  Officials are considering whether a local property tax could replace council tax once a national tax designed to substitute Stamp Duty has been implemented.   Currently, no official announcements or decisions have been made. As house prices continue to increase, Propertymark added that any additional taxes must not penalise aspiring homeowners at a time when the amount needed for a deposit reaches the tens of thousands.  Timothy Douglas, Head of Policy and Campaigns at Propertymark comments:   "Discussions around reforming Stamp Duty are welcome because it is a significant barrier to moving and getting people on the housing ladder. What's key is that any reforms are evidence based and support first time buyers, second steppers and those looking to right size. "Economic growth can come from reducing the financial burden of Stamp Duty which we know increases the number of transactions, but any changes must work alongside differing property prices and the dynamic nature of our housing markets across the country."