Although there is a need for action, Brendan Cox, Managing Director of Waterfords estate agents is an advocate for a long term fundamental change, a complete reform of the stamp duty system since the last two year holiday for first time buyers which ended in April 2012 made no difference to the property market or economy at all.
He says:
“We speak to a lot of people who are put off moving due to the amount that they have to stump up for stamp duty, and this is people right across the board and not just first time buyers. There is a need for the government to do something radical with the stamp duty system to get things moving in the property market and to help kick start the economy. A holiday for first time buyers is not enough, it needs to target everyone. The previous abolishment didn’t work, although this was partly because it came at a time when lenders just weren’t lending any money. If there had been a flow of funds available then it may have helped the situation, nevertheless there wasn’t a noticeable change.
The problem with the system at the moment is there is a lack of incentive for people to buy and sell property. By having a procedure similar to income tax where you are paying a certain percentage up to a certain level it would provide a more stable structure and it would remove any distortion around the thresholds.
Currently, the stamp duty is holding up the property market which is a vital component in the health of the economy.”
