Stamp duty is worsening the UK housing crisis by affecting supply, according to the head of property investment managers Jones Lang LaSalle.
JLL global chief executive Christian Ulbrich says homebuyers are “paying for nothing” with stamp duty, which hits landlords and second homeowners, according to the Telegraph.
Ulbrich adds that stamp duty makes it “prohibitive” to build more houses, despite former chancellor George Osborne cutting the tax for most house purchases in 2014.
He says: “For long-term development, stamp duty is definitely harmful, because the stamp duty in itself doesn’t create any value. It’s an additional cost that makes development more unattractive and it has to be considered in the pricing.”
Ulbrich also slammed the 3 per cent surcharge on buy-to-let properties and second homes, which he says has a “very strong dampening impact on the market”.
The JLL chief called for more homes to be built, and noted that infrastructure projects such as London’s Crossrail would help by expanding the commutable distance to the capital.