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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