It seems like the British government keeps bringing up obstacles in the real estate market, both for foreign investors and domestic home owners, by keeping the stamp duty active. With Brexit right around the corner, the british government should be trying to find new ways to further extend real estate development in order not only to sustain the money flow from abroad but also improve the quality of life of its own citizens.
Key Takeaways:
- Stamp duty is making the UK housing crisis worse by distorting the market and harming long-term development
- For long-term development, stamp duty is definitely harmful, because the stamp duty in itself doesn’t create any value. It’s an additional cost that makes development more unattractive.
- Increasing housing supply would help to “create an environment where that demand finds a home”. More house building is therefore essential and would be good for the economy.
“For long-term development, stamp duty is definitely harmful, because the stamp duty in itself doesn’t create any value. It’s an additional cost that makes development more unattractive and it has to be considered in the pricing.”