Stamp Duty

One aspect of moving home, which has affected both house prices and house shortages, is the progressive increase in Stamp Duty since the Blair/Brown regime came to power.

On March 22nd, 2007, The Times reported that Stamp Duty had increased by 31% since 2005 (http://business.timesonline.co.uk/tol/business/economics/article1554614.ece) while four days later, Property Finder revealed that the average Stamp Duty paid had increased from an average of £543 to £5,009 since 1997 (http://news.bbc.co.uk/1/hi/business/6483697.stm.), an increase of 922%.

As moving house now costs, on average, £9,500 in addition to the purchase price, many people are staying where they are and generating the housing shortage that we see today, in turn driving up prices for the property that is available. More critically, as the average house price can no longer be realistically met by the average salary, the increase in moving costs simply put potential first-time buyers further away from the first rung of the property ladder, or add to their financial burdens.