Government needs to be 'creative' about stamp duty

Politicians are being called upon to be more creative when it comes to stamp duty reform.

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, has said that more needs to be done by the government to improve the property market.

Mr Rubinsohn said that the Bank of England could not be relied on to slash interest rates, saying that this had been displayed by Monetary Policy Committee member Tim Besley voting for a rise at the last meeting.

This, he said, "highlights the need for the government to think creatively both in terms of stamp duty reform and the provision of mortgage finance".

Since 2000, the 3% threshold has been set at £250,000 - while buyers purchasing property worth £500,000 or more have paid 4% stamp duty.

Shadow housing minister Grant Shapps said: "Instead of helping people onto the housing ladder, the government has hijacked the home buying process by raising stamp duty."

"Buying your own home used to be an obtainable dream for many people - now it is just the minority who manage to climb onto the property ladder."