In direct response to the affordability pressures facing today's first-time buyer, the Association's president, Stewart Lilly has spoken out, proposing sweeping changes to the Stamp Duty thresholds to be put into action in the march 2008 budget.
The Association has proposed a new scale, similar to that of income tax, which will see a nil rate on properties up to £200,000 and only 1 per cent on those up to £300,000. This is designed to reflect the sharp increase in national house prices during the last few years.
The scale continues with rates of 2 per cent from £300,001 to £450,000 and 3 per cent from £450,001 to £1 million.
Properties above the million pound mark would be taxed at the proposed rate of 4 per cent, with anything above £2 million incurring a 4.5 per cent rate.
Lilly said that the government needed to show some awareness of the fact that today's homeowners need a helping hand. He also believes Value Added Tax (VAT) should be removed for eco-products to promote energy efficiency.
He added: “We would like to encourage more balance in communities – especially rural communities – that have for some time lacked the proper investment to get the right mix of properties in the right place and at the right price with the services to match.
“We believe that together with Stamp Duty reform, reduction in buy-to-let Capital Gains Tax and a greater emphasis on real green policies that work the government can make a big difference to the housing market."
