Coalition calls for stamp duty reform

A property coalition formed by the National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA) has called for stamp duty to be abolished.

Named after the year the tax was extended to property sales in Great Britain, the 1808 coalition slammed the charge as a "relic", saying it no longer reflects the modern UK housing market.

The "unfair and punitive" tax has become increasingly outdated as the thresholds have not been properly aligned with house prices, claimed NAEA chief executive Peter Bolton-King.

"Stamp duty has failed to evolve and is an unwelcome burden for anyone seeking to buy a new home," he said.

"As lenders demand even greater deposits, buyers are going to struggle to stump up the huge capital outlay that stamp duty demands. Now is the perfect time to seek change and produce a fairer tax that recognises the challenges that modern house buyers face."

The coalition claimed the tax yield from residential stamp duty has increased significantly over the last ten years, growing from £675 million in 1997 to £6.68 billion in 2008.

Get a buy to let property insurance quote today from Simple Landlords Insurance.