Burnham, who assumed the premiership in July, publicly ruled out scrapping stamp duty during a visit to Portsmouth, telling reporters: “That won’t be happening.” He has acknowledged, however, that he wants to “make taxation fairer” and has indicated that wider property tax restructuring may be on the agenda in the coming months.
Murphy noted the prime minister may have longer-term plans in development but warned that waiting risked leaving the market without support in the interim.
“He needs to reduce stamp duty now, even if he’s got a bigger plan for property taxation and restructuring property taxation in the next 18 months,” Murphy said. “He really does need to offer a bridge, because if in 18 months’ time his master plan is totally rejected, he’s got nowhere to go.”
A French-inspired model
Murphy outlined a proposal inspired by France’s approach to property transactions, under which stamp duty relief would be made available to older homeowners who choose to downsize, and also to the families purchasing those vacated properties, but with a condition attached.
“We say to them, we’re going to give you reduced stamp duty, but we’re going to give you a two-year window to make your house more energy efficient,” Murphy said. “And if not, we’re going to charge you additional stamp duty for you not doing it.”
