Stamp duty needs to be reduced if the housing industry is to see a rebound, according to results from a recent survey.
The housing market’s near-historic lows that have been experienced recently have caused Loan Market to call out for stamp duty reduction as a result of survey responses, which found 55 per cent of respondents citing ‘stamp duty relief’ as the item that should be the government’s top housing market priority.
Asking ‘What action can the government take to stimulate the housing market in 2013?’ 450 mortgage brokers across the country showed that stamp duty was a major obstacle stopping consumers from jumping into the housing market.
“Stamp duty serves as an important source of revenue for state-based governments looking to create balanced budgets, but in many cases this tax can erode a significant chunk of a homebuyer’s savings and sway their buying intentions,” said Loan Market corporate spokesperson Paul Smith.
“In every state first home buyers have some type of concession that helps them avoid this cost. However, for those looking to purchase their second home or an investment property this is an unavoidable cost.”
This is especially important as interest rate reductions appear to have a minimal impact on the housing industry, he said.
Thirty two per cent of respondents said that they recommend the government reintroduces or amends state level grants, 10 per cent said ‘lower property taxes’ while just three per cent cited releasing more land for home construction as a good action to take.