New stamp duty rule means ‘nobody will be able to afford to move house’

Moving home could become UNAFFORDABLE due to a new rule change under the Labour Party government. Labour will drive up house prices and discourage downsizers if it goes ahead with plans to axe the stamp duty discount, experts have warned.

Analysis by estate agent Hamptons shows the average downsizer would face a stamp duty bill of £2,850, up from £2,500 today. Aneisha Beveridge, of Hamptons, said the stamp duty rise next year will mean nine in 10 movers will be pulled into paying the tax, up from just over half today.

She added: “As the burden of stamp duty has risen over time, it has become more of a consideration for downsizers, adding to a list of reasons to stay put. While historically, most downsizer moves have been triggered by life events, more are now being driven by financial reasons.”

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Purplebricks managing director Jo Pocklington said: “Ending the stamp duty relief could discourage people from downsizing, which means there would be fewer properties available to buy – and this usually increases house prices.

“This could in turn discourage people from upsizing, which would mean a lack of properties becoming available for first-time buyers to get on the property ladder. The property market needs first-time buyers to keep it flowing smoothly.”

Paul Dales, of Capital Economics, said “You’ll certainly get demand being actively brought forward from April and May. People will be a bit more desperate and on a tight timeline, so prices go up a bit more, but this will be temporary.”

Chris Sykes, of mortgage broker Private Finance, said: “With homeworking life, families now need bedrooms as well as offices. If you have two kids you might need a four-bed house plus two bedrooms for offices.” A government spokesman said: “We do not comment on speculation around tax changes outside of fiscal events.”