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Sajid Javid says that he will not shift stamp duty to sellers

Sajid Javid has dismissed a report in the Times over the weekend that claimed he planned to make property sellers rather than buyers pay stamp duty tax.

“I wouldn't support that,” the chancellor said in a tweet.

“I know from the Ministry of Housing, Communities and Local Government that we need bold measures on housing - but this isn’t one of them,” he added.

Javid had appeared to suggest the idea in an interview with the Times, as he prepares for his first spending review.

When asked about changing who pays stamp duty to save first-time buyers paying any tax, he said: “I’m looking at various options. I’m a low-tax guy. I want to see simpler taxes.”

But the idea prompted some warnings that it could hit older people who are planning to downsize to smaller properties, which could prove unpopular with Tory voters.

It is also worth pointing out that many buy-to-let landlords offloading properties would have been adversely affected by this change.

There was an average of four landlords per letting agency branch exiting the market in June, according to the latest data from ARLA Propertymark.

With more landlords selling up, the number of properties available to rent continues to fall restricting supply for prospective renters.

David Cox, ARLA Propertymark chief executive, said: “The repercussions of the Tenant Fees Act, the proposed abolition of Section 21, coupled with the Mayor of London’s recent call for rent controls, will only cause the sector to shrink further.”

Following Sajid Javid’s denial of reported plans to shift stamp duty to sellers, Nick Sanderson, CEO of Audley Group, hopes that the chancellor is “speaking the truth” when he says he will not shift stamp duty to sellers, “for the sake of both the economy and the environment”.

He said: “Shifting stamp duty to sellers would be a catastrophic error. The potential positive impact on first-time buyers would be completely wiped out by the lack of available housing stock.

“Piling more financial burden on the seller would create a barrier to movement in the market, and exacerbate the UK’s existing under-occupation problem. It would be a major brake on downsizing which is so critical to increasing transaction levels.”

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    Really makes no difference, if I'm buying I decide how much I want to pay then take off fees and stamp duty to come to the max price that I will bid, if I were selling I would add these costs to the reserve price.

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    I don’t understand what’s going on, another fake News program on ITV last night about shortage of Housing, when there is not any. There is no shortage just shortage of people who want to pay their way but they all want to be on the Council. So how did those ladies get 2/ 3 or 4 kids where is their free loader Fathers, why don’t they rear their families or are the on Benefits as well. I see houses to let since before Christmas & still vacant, 6 in Cleveley Crescent, alone in just one road in Ealing. I see houses for Sale since before Christmas as well but not selling, yet building like crazy thousands of Flats clearly not required. I had aFlat vacant in Acton for 5 months before I got Tenants. Why did TV news program see fit to invite Shelter on, who don’t supply any housing spreading all this false information.

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    Stamp duty madness supposing if I were to purchase a house on outskirts of London for £500k if I could get one for that.
    I would have to earn £50k first then pay 40% income tax on that to have the £30k left to pay the Stamp Duty, in other words the had the whole £50k off me ?.

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    I disagree I think stamp duty should be payable by sellers. The seller should also be allowed to use this for his CGT calculation. Its an expense. First time buyers struggle to save a deposit for a mortgage we are forever hearing so Stamp duty is a burden. I will simply increase the house price if affected by this duty & the buyers 25yr mortgage will absorb this. The market is released. The GR first time buyer gets my house that they have been bitching about for years. I can then get out of paying taxes on money that I never received - Gov eventually works out in years to come that they didnt actually received more tax revenue - Result

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    I don’t go along with this either, the Seller is hammered already. I sold a house in one area to buy one closer to home so it would be less travelling & easier to look after, bad idea by the time I paid c/gains not worth doing. Why not scrap Osborne’s nonsense tax & leave it the way it was, it was still a lot of tax but nothing like this.

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