Policy Exchange is urging the Government to consider abolishing stamp duty for first time buyers, as it is has become an added barrier when considering buying a home. Due to increases in house prices, stamp duty now raises £4.6billion for the Government, compared with £675 million ten years ago when Labour came into power.
Zurich has conducted its own research and found that many would be first time buyers opt to live with parents, while one in seven buy a home one-mile or less from their parents.
Our view
Looking at the revenue gain for the Government, would you increase the nil rate thresholds? We think not. Stamp Duty will remain.