Estate agent Beresfords is urging on the government to rethink its stamp duty plans ahead of the budget on Wednesday.
It wants George Osborne to introduce a new band threshold that it claims will kick start both the second hand and new build housing markets.
Beresfords has suggested creating a second tier of stamp duty land tax (SDLT) between £250,000 and £500,000 of £375,000 at 2%. While the government would see a shortfall of £23million in stamp duty revenue, Beresfords believes that the new 2% bracket could substantially increase the number of transactions as buyers are encouraged by the tax savings. The government would see further economic benefits with an increase in levels of property related business and subsequent tax revenue collection.
Paul Beresford, managing director, Beresfords, said: “The cost factor of stamp duty has been underlined by the 40% rise in first time buyer transactions since the beginning of the year as this group of buyers rushed to beat the exemption deadline at the end of this month.