Phil Spencer shares concern over property tax ‘shake-up’ – ‘can Sunak pull it off?’

Stamp duty: Phil Spencer says he sees ‘catastrophe brewing’

Property expert Phil Spencer was joined by Chief Policy Advisor at Propertymark, Mark Hayward, in a YouTube video for Move iQ. Phil, who usually works alongside Kirstie Allsopp on a plethora of Channel 4 property shows, shared his concerns surrounding the stamp duty deadline. The presenter and property guru said stamp duty is an “area where there is confusion and doubt and an unknown”.

Phil asked Mr Hayward what his take is on the stamp duty holiday and its upcoming March 31 cut-off date.

Mr Hayward said the Government are being very “tight-lipped but that he has been in conversation with them”.

He said: “I think reading the signs coming out from the Chancellor, he is reluctant to extend [the deadline].

“However, we have a Budget in March and there is a feeling that they may look at a complete review of property taxes which will include not only stamp duty but also council tax and capital gains tax.

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“I think they will extend it because it’s quite obvious that those in the system are not going to make it.

“I think if the cliff edge happens, we’re going to see an erosion of confidence which is not good because as you know the housing market relies upon sentiment.

“If the sentiment’s not good that means people will withdraw from sales.

“All prices will have to be readjusted because of the stamp duty coming back in so that’s going to cause issues with lenders.

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“What they don’t want is perceived values to drop.”

Phil said he agreed with Mr Hayward and that he has concerns.

He added: “I am concerned about it and I’ve read about the Government considering a whole shake-up of the property tax.

“I just questioned whether they could pull it off because it’s a huge option.”

Mr Hayward said the “middle ground” option would be to extend the stamp duty holiday for up to a year and then during that time consult and look at property taxation as a whole.

The property expert said he doesn’t think the Government will be able to make a decision by March 3 which is when the next Budget will take place.

Phil said the Government needs to keep the public “motivated and focused” towards the stamp duty deadline date at the end of March which is why they are being “tight-lipped”.

The Location, Location, Location co-presenter said he thinks the deadline should be “tapered” or slowly phased out so that people can complete their transactions rather than there being a cut off on March 31.

“A tapering off after that so if you get the full benefit if you complete by the end of March but actually it tapers off over the next few months to allow people in the system to benefit at least in some way,” he explained.

Mr Hayward said it’s unlikely the Government will announce an extension to SDLT deadline soon as they want to keep the property market momentum going.

However, he did think that the beginning of March could be a “good time” to extend it.

The property experts discussed the stamp duty extension, property viewings and Covid safety rules for house viewings.

Kirstie and Phil’s Love It or List It will air on Channel 4 tonight at 8pm.

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