Stamp duty 'hits property market'

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Increased stamp duty has made house prices more volatile and reduced property transactions by as much as 500,000, according to research.

The study by the Centre for Economics and Business Research (CEBR) suggests yield from stamp duty on residential property has risen ten times from £675m in 1996/97 to approximately £7bn in 2007/08. In addition, the CEBR, which claims a yield study done since Labour came into power in 1997 has never been done, says stamp duty was raised to 2% on higher value properties in 1997, 3% in 1998, 3.5% in 1999 and 4% in 2000. The combination of higher rates of stamp duty and the impact of house price inflation on the number of properties falling into the higher rate bands has, CEBR says, turned th...

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