Government is "clobbering people" without realising

Date:Monday 19th October 2009
Author: Susanna Kavka

Stamp duty is too big a cost for people to write off and it is making them think twice before selling, according to an industry commentator.

Ed Mead, director of Douglas and Gordon estate agents, claimed that people whose homes are worth more than £250,000 stand to lose up to seven per cent in stamp duty, which he pointed out is a huge sum of money to pay to move house.

He stated that this tax appeared to be a good idea when the property market was doing well, but now he feels that it looks like a bad policy.

Mr Mead observed that people would be far more willing to move house and take out a new mortgage if they only stand to lose one or two per cent of the value of their property, but will not want to do so as things stand.

"The government just doesn't think like that; it hasn't realised how much it is clobbering people. It is like a tax on mobility," he explained.

His remarks were made following research by FindaProperty.com, which indicated that the recent stamp duty holiday has cost the government about £201 million in the first year of it being in place.