Stamp Duty Budget Announcement: short-term politics, poor economics, lousy housing policy, does nothing to help the majority in housing need

I have been asked to repeat the figures I quoted on BBC radio this morning regarding the impact of the abolition of Stamp Duty for first time buyers on homes costing up to £300,000.

The cheapest home I could find in Brighton and Hove is a flat priced at £150,000 which is six times average earnings in the City.

Stamp Duty on this home would have been £500. The Office for Budget Responsibility has predicted that the Stamp Duty announcement from the Chancellor, Philip Hammond, will have an inflationary impact on house prices which it forecasts will increase by 0.3%. This would see the price of the £150,000 flat increase by £450, meaning that the first time buyer would benefit by the princely sum of £50.

The winner, of course, will be the seller who will gain a further £450 subsidised by the taxpayer.

Another ill-thought through policy but one that has grabbed the headlines.  Good short-term politics, poor economics, lousy housing policy, does nothing to help the majority in housing need.

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One thought on “Stamp Duty Budget Announcement: short-term politics, poor economics, lousy housing policy, does nothing to help the majority in housing need

  1. The fault line here was evident the second the words were out of Hammonds mouth, hence the jeering in the Chamber. What is disturbing is one of your Trustees and supporters speaking on twitter to endorse this policy as a form of help to her constituents in Lewes.

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