New figures expose growing reach of Gordon Brown's stamp duty hikes

Average detached home in Harrow now pays £25,850 in stamp duty
 

As concerns grow about the state of the housing market, worrying new figures have revealed how family homes across the country are being hit by punitive rates of stamp duty imposed by Gordon Brown. The average detached home is now being forced to pay 3% stamp duty, and has seen its stamp duty bill rise by almost £9,000 under Labour.
 

·         Stamp duty hiked by stealth: The thresholds for 3 per cent and 4 per cent stamp duty have never been increased to compensate for changes in house prices. As a result, at every Budget, the lack of any announcement on indexation means more and more homes are sucked into the higher tax bands. By saying nothing, Gordon Brown literally increases stamp duty and rakes in more money.

·         £9,000 tax bombshell: New analysis of official Government data has revealed that the average detached home in England paid just £1,170 in stamp duty in 1997. Today, the average detached home pays £9,903, by virtue of being pushed into the 3% stamp duty bracket – a hike of £8,733. Bob Blackman, prospective parliamentary candidate for Harrow East, has highlighted that in Harrow, the average detached home pays £25,850, an increase of £23,193since 1997.

·         Three out of four detached homes hit: Detailed calculations across each local authority reveal that almost three quarters of family homes are now being hit with punitive stamp duty. The average detached home in 70 per cent of local authorities in England and Wales now pay 3% or 4% stamp duty, compared to none in 1997.

·         Taxed if you move, taxed if you don’t: High rates of stamp duty are discouraging many families from moving. Yet they now face the prospect of new stealth taxes if they stay and build an extension. Spurred on by Government rules, town halls are starting to introduce a ‘bedroom tax’ of £1,000 per spare room if an existing house wants to obtain planning permission. New conservatories or garages could also be taxed in such a way. A council tax revaluation is also being planned for England by the Valuation Office Agency, Gordon Brown’s council tax inspectors, which will target home improvements, scenic views and nice neighbourhoods.

·         Conservatives call for help for homeowners: Conservatives are calling for a series of measures to help the housing market, including abolishing the new red tape of Home Information Packs, cutting stamp duty for first-time buyers and cancelling the council tax revaluation plans. First-time buyers are being hit the hardest by the credit crunch.

Bob Blackman, prospective parliamentary candidate fro Harrow East,said:

“Gordon Brown has hiked taxes on family homes across Harrowyear on year. Labour has increased the burden of stamp duty by stealth, punishing people who have invested in and improved their homes. I fear even more stealth taxes are on the way in the form of new bedroom taxes to extend your home and a sinister, intrusive council tax revaluation.

“At a time when the housing market is so fragile, we need practical measures to help people move home – such as abolishing the red tape of Home Information Packs and cutting stamp duty for first-time buyers who are suffering the most.”

Notes to Editors

GORDON BROWN RAKING IN STAMP DUTY ON FAMILY HOMES

As Chancellor of the Exchequer, Gordon Brown introduced first the 2 per cent and 3 per cent stamp duty rates, and then increased them to 3 and 4 per cent. The thresholds for these higher bands have never been increased by house price inflation since they were introduced. As a result, year by year, more homes are sucked into punitive stamp duty rates.

“Mr. Pickles: To ask the Chancellor of the Exchequer what the stamp duty thresholds for residential properties were in each year since 1996-97.

Kitty Ussher: The main thresholds for Stamp Duty and its replacement, Stamp Duty Land Tax (effective from 1 December 2003) are detailed in the following table, covering the period from 1996-97 onwards.

Threshold and rates of stamp duty

Hansard, 23 October 2007, col. 254W.

http://www.publications.parliament.uk/pa/cm200607/cmhansrd/cm071023/text/71023w0021.htm 07102376000314

NEW ANALYSIS OF SOARING STAMP DUTY

Parliamentary Questions by Conservatives have forced the Government to publish comparative figures for the house prices of detached homes when they came to power and today.

“Mr. Pickles:  To ask the Secretary of State for Communities and Local Government what the average price for a  (a) house,  (b) detached house and  (c) flat was in each local authority area in England and Wales in (i) April 1991, (ii) May 1997 and (iii) the most recent period for which figures are available, according to Land Registry data.

Mr. Iain Wright: HM Land Registry data for 1991 is unavailable. A table presenting HM Land Registry data on the (a) average house price, (b) average price for a detached house and (c) average price for a flat by local authority area for May 1997 and March 2007 (provisional) has been placed in the Library of the House.”

Hansard, 19 October 2007, col. 1333W,

http://www.publications.parliament.uk/pa/cm200607/cmhansrd/cm071019/text/71019w0003.htm 07101930002749

dataset: http://www.conservatives.com/pdf/housepricedata.xls