Tory MPs are urging the government to cut or scrap stamp duty in a bid to save homebuyers thousands '� although their proposals don't extend to landlords, LandlordZONE can reveal.
Kevin Hollinrake, a member of the Treasury select committee and founder of Hunters estate agent, says stamp duty is a 'disincentive to transact, which is bad for the economy'� and suggests the initial �125,000 threshold could be axed, effectively making the pandemic stamp duty holiday for lower-value homes permanent.
However, although he believes the current surcharge is fundamentally wrong, Hollinrake is unsure whether landlords should be included in any potential shake-up by the Treasury, he tells LandlordZONE.
'Landlords do a very good job, providing accommodation for lots of people but this is a tricky area - I'm on the fence,'� he says. 'It needs to be looked at, but this is not a fully worked out proposal.'�
Rising house prices mean 1.2 million homes that were previously zero-rated now require buyers to pay stamp duty after moving above the �125,000 threshold, meaning they face 2% tax on any purchase funds above that amount.
According to a report in The Telegraph, a further 3.1 million have been dragged into higher stamp duty brackets, paying between 5%-10%.
First-time buyers '� who will also have to raise an extra �4,000 for a deposit compared with two years ago and an additional �5,000 in annual household income to secure a mortgage '� will be hardest hit, according to analysis by Zoopla.
Meanwhile, the Treasury has collected �18.6 billion in the year to March 2022, an increase of �6.1 billion despite the stamp duty holiday during the pandemic.
Sir John Redwood MP and Greg Smith MP have also called for changes to the current tax system.
Read more: Scrap the 3% stamp duty surchage says NRLA.