The overwhelming majority of UK owners are involved that proposals to switch stamp responsibility with a flat property tax would rise over time and present a “important monetary burden”.
A ballot of property homeowners finds that 96% of respondents consider that the 0.5% proposed annual property tax would creep larger over time, in response to a research by middleman Boon Brokers.
This fear is most acute amongst retired and older working households who’ve paid off their mortgages, 75% of which say, “an annual property tax might pose a big monetary burden and threaten the monetary safety lengthy related to homeownership,” studies the dealer survey.
The ballot comes after studies surfaced final month that the Chancellor is contemplating a nationwide property tax to switch stamp responsibility and a neighborhood houses tax that would be phased in to switch the council tax.
This tax would be paid by owners reasonably than patrons, as is the case with stamp responsibility, at a charge to be decided by central authorities.
Currently, patrons in England and Northern Ireland are required to pay stamp responsibility on properties valued over £125,000. For first-time patrons, the edge is £300,000.
The levy raised £11.6bn final yr, in response to authorities information.
The new property tax would have an effect on a few fifth of property gross sales, in contrast with about 60% with present ranges of stamp responsibility, in response to officers.
Meanwhile, a new native annual property levy, set at 0.5% the worth of a house, is being checked out to switch council tax over an unspecified phased interval.
This would see homeowners, reasonably than the residents, of a property price as much as £500,000 paying the tax.
The levy, which can take years to come back into impact, is predicted to begin at £800 a yr with funds going on to native councils, whose funds have been stretched in recent times.
However, the ballot warns that the new taxes might result in a freeze in housing mobility.
It finds that 35% of house owners mentioned they would be much less more likely to promote if sellers had been required to pay a property tax, whereas 51% added they would be much less doubtless to purchase a higher-priced property if an annual property tax had been launched.
Just 24% of house owners mentioned they would proceed as deliberate, whatever the reforms.
Boon Brokers managing director Gerard Boon says: “Introducing an annual property tax dangers undermining the pure fluidity of the housing market.
“Rather than encouraging individuals to maneuver for work, household, or house, it might entice households in properties that now not meet their wants, which appears counterintuitive to the broader objectives of a wholesome housing market.”
The agency’s survey was performed by information group TLF Research between 5 and 12 September amongst 1,000 mortgage candidates.
