Thursday 22 August 2019

Stamp duty decrease 'could revive the property market'

THE REDUCTION in stamp duty from a maximum of 9 per cent to 1 per cent will be a huge help in reviving the property market, according to Wexford auctioneer Adrian Haythorntwaite.

Adrian, of Sherry Fitzgerald Haythorntwaite, said the tax cut will have far-reaching benefits for everyone involved in the industry, from auctioneers and solicitors, to surveyors, builders, tradesmen and household service providers.

The high level of stamp duty in Ireland, compared with other European countries, has been the single biggest disincentive to people buying and selling homes.

' The most expensive bit about changing from one house to another was stamp duty, resulting in an involuntary charge of tens of thousands of euro on a house transaction. Our industry has complained that stamp duty is the reason transactions were not taking place,' said Adrian, who views the Budget measure as a 'major glimmer of hope.'

'It was a massive tax. Take one person selling a house in town for €150,000 and hoping to move to a €300,000 house in the country. The purchaser will pay approximately €5,60,0 and then when you buy the other house, you'll pay up to €13,000. That's a ?20,000 take by the Government as a result of you wanting another bedroom.'

' That's the biggest reason people didn't move. All the other costs are discretionary,' he said.

The Government's stamp duty take during the economic boom was about €100 million a month compared to €80 million for the first eight months of this year.

The auctioneer believes the reduction will revive the ailing property market and improve business for a wide variety of people. 'When someone buys a house, a lot of things happen. It involves solicitors, auctioneers, structural surveyors, removal people, carpet suppliers, decorators etc.'

'I believe this could actually get the industry moving again. I find other aspects of the Budget appalling but this is one business decision that can do a lot of good.'

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