Mayor for stamp duty cut to help home buyers

London Evening Standard/London

Boris Johnson weighed into government tax policy, urging George Osborne to cut stamp duty to help struggling first-time buyers.He said cutting the tax on homes would stimulate the housing market and give a vital boost to the economy.

However, the mayor’s aides said he thought there should be a ceiling so the cut would not apply to the most expensive homes.

The chancellor announced in his March Budget that the top rate of stamp duty on properties over £2mn would rise from 5% to 7%.

About a third of the total stamp duty raised in England and Wales is generated in the capital. Johnson said he wanted the Chancellor to announce he was slashing the rate in his Autumn Statement next week.

He said: “Stamp duty is very high at the moment and you can certainly look at cutting it in the round. The benefit would be to reduce the price of a home and stimulate the market.”

The mayor has also pressed Osborne for control of the billions of pounds raised through stamp duty in the capital. City Hall insiders have since conceded that the chancellor is unlikely to agree.Johnson singled out stamp duty on new developments as a problem for London’s economy.

“We need to make sure that we get housing moving. It’s the single best thing you can do for the economy at the moment. It will drive tens of thousands of new jobs,” he said.

“You’d immediately incentivise the construction of new homes. You’ll help people get their first home. So get rid of it, get rid of stamp duty on new build homes.”