Stamp Duty revenue increase to be used in areas with highest numbers of second homesMake Text Bigger
Stamp Duty Land Tax (SDLT) revenue has increased by 12% to £7.7bn for the first eight months of the 2016-17 financial year compared to the previous year despite a 9.9% decrease in the number of property sales.
Purchase transactions for this period April to November 2016 fell from 868,000 last year to 782,000 this year.
The increase in tax revenue is due in part to continued rising house prices, 12% on top slice on homes worth more than £1.5m and the 3% surcharge of Stamp Duty on second homes.
40% of SDLT income comes from inside the M25, but with the number of London transactions falling this could put a dent in projected income raised for the Treasury in the near future.
The Government has announced it will introduce an annual £60m fund for areas of England with the highest levels of second home ownership that is perceived to push the price of homes up.
The fund is to be used by councils to provide “affordable” homes for first time buyers over the next five years. However, with 150 councils targeted it does rather seem a drop in the Ocean.
Housing Minister, Gavin Barwell, said “the high number of second homes can be a frustration for many who struggle to find an affordable home in their community. This new fund will help tackle that by boosting supply and making sure community groups are at the heart of delivering new homes, so that this is a country that works for everyone.”
For the first year the funds will be used to improve skills and reviewing housing needs in different areas and must then be used to deliver housing on the ground for local people during the second year.
In other words don’t hold your breath!
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.