Liz Truss Plans to Cut Stamp Duty

Posted by Mesa Financial on 23rd September 2022 -

According to The Times, the move comes as part of an attempt to drive economic growth by enabling more first-time buyers to get on the property ladder and boosting property transactions. Truss said:

“I’ve been very clear that as well as keeping taxes low, we need to put in place measures that are going to drive growth in the economy. And that’s my priority — we’ve had relatively low growth for several decades.”

First-time buyers with a desire to own their own home will welcome this news with open arms and it’s understandable. Who wouldn’t prefer to have an extra £15,000 in their own bank account?

It’s been suggested that the move will simply boost demand for an already limited product. Housing – which in turn could drive drive up prices once again. What would really boost the economy and property market? 

Cutting stamp duty will not increase the effectiveness of planning departments or ramp up the amount of applications that are approved.

Cutting stamp duty does not make mortgage rates more affordable.

Cutting stamp duty will not solve the lack of housing stock.

To put it simply, we need more homes under construction and cutting stamp duty does not solve that issue.

It’s crystal clear that the underlying market issues require ‘joined up thinking’ for long term prosperity as opposed to driving short-term growth.

 

Chris Treadwell – Senior Associate