Purplebricks shows support of Conservative Party with Stamp Duty reform backing

Purplebricks has shown its support of a conservative proposal to reform Stamp Duty, even though there's no guarantee that the reform will be included in the party's running campaign.

The Conservative Party has not yet published its manifesto but Prime Minister Boris Johnson said during his leadership campaign that he would consider raising the Stamp Duty threshold from £125,000 to £500,000 and cutting the top rate from 12% to 7%.

Research by Purplebricks and property market economists Glenigan estimates that such reforms would lead to an additional 131,000 house completions in the next 12 months alongside a saving of £3.2 billion or £4,300 each in Stamp Duty costs for movers.

No duty would be payable on 89% of home purchases, the research claims.

The analysis claims this reform would provide a direct £1.7 billion boost to the economy in move related spending including conveyancing fees, property surveys, estate agency fees, removal costs, decorating and home furnishings.

In addition, movers would spend a further £473 million on improvements to their new homes, Purplebricks claims.

Whilst the government would lose £3.2 billion in Stamp Duty revenue, the rise in moving spend, VAT and other tax receipts would generate £1.2 billion, according to Purplebricks.

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