McDonnell’s distorted and dangerous version of Right to Buy9:01 AM, 5th September 2019
About 2 weeks ago 35
London Central Portfolio (LCP) have released their analysis of HMRC’s Quarterly Stamp Duty Land Tax (SDLT) Statistics for Q2.
Tax receipts in Q2 2018 are down 13.8% compared to Q2 2017, a drop of £317m.
SDLT Tax income is no greater than Q3 2015 despite an increase in top rate from 7% to 12% and introduction of the Higher Rate for Additional Dwellings (HRAD) of 3% surcharge for second homes.
Second home 3% surcharge receipts have fallen by 21.9% and the number of these transactions has fallen by 12.3% to 57,720 this quarter.
Naomi Heaton, CEO of LCP, Residential Investments Specialists, said:
“The fall in transactions UK wide recorded by Land Registry and reported by LCP in its monthly residential index, is now also reflected in HMRC’s Quarterly Stamp Duty Statistics. This must be of increasing concern to the Exchequer. Despite the introduction of a slew of residential taxes, the tax take for the Revenue appears to be tailing off, with a fall of almost a third of a billion pounds this quarter compared with last year.
“The cooling of prices as a result of these taxes, particularly amongst high value properties has not resulted in increased buying activity. Whilst greater affordability may benefit first time buyers and second steppers, it also disincentivises sellers who are not motivated to move if they see the value of their home decline. There is a real risk that a dwindling “feel good” factor together with Brexit uncertainty could depress the market further.”
“Whilst the government seems to have effectively dampened foreign investment, there have been severe repercussions in the new build sector, particularly in London. With average prices of £755,553 currently recorded by Land Registry, these properties are largely inaccessible to the domestic market. This has resulted in annual transactions falling 12.6%. However, without a thriving new build sector, it seems difficult to see how the government is going to meet its targets for affordable housing.”
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