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Residential stamp duty:Time for a change

Author

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  • Mark Andrew
  • Alan Evans
  • Phoebe Koundouri
  • Geoffrey Meen

Abstract

In this report, we are concerned with the impact of the current system of residential stamp duty. Not only does stamp duty have an effect on the housing market, but it also discriminates between both different parts of the country and different household types. Because of the inefficiencies and inequalities of stamp duty the report also explores alternatives to the current system. We demonstrate that even modest reforms can generate significant improvements. The purpose of our report is to consider the economic rationale lying behind stamp duty. We have three broad main aims: �to consider how stamp duty measures up to general principles of optimal taxation, �to consider and quantify, where possible, the effects of stamp duty on the housing market and wider economy, �to discuss meaningful revenue-neutral alternatives to the current regime.

Suggested Citation

  • Mark Andrew & Alan Evans & Phoebe Koundouri & Geoffrey Meen, 2003. "Residential stamp duty:Time for a change," DEOS Working Papers 0304, Athens University of Economics and Business.
    • Handle: RePEc:aue:wpaper:0304
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    References listed on IDEAS

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    1. Quigley, John M., 2002. "Transactions Costs and Housing Markets," Berkeley Program on Housing and Urban Policy, Working Paper Series qt6pz8p6zt, Berkeley Program on Housing and Urban Policy.
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    4. Mark Andrew & Geoffrey Meen, 2003. "House Price Appreciation, Transactions and Structural Change in the British Housing Market: A Macroeconomic Perspective," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 31(1), pages 99-116, March.
    5. Haurin Donald R. & Hendershott Patric H. & Kim Dongwook, 1994. "Housing Decisions of American Youth," Journal of Urban Economics, Elsevier, vol. 35(1), pages 28-45, January.
    6. Maclennan, Duncan & Muellbauer, John & Stephens, Mark, 1998. "Asymmetries in Housing and Financial Market Institutions and EMU," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 14(3), pages 54-80, Autumn.
    7. James A. Berkovec & John L. Goodman, 1996. "Turnover as a Measure of Demand for Existing Homes," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 24(4), pages 421-440, December.
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    Cited by:

    1. Andrew, Mark & Haurin, Donald & Munasib, Abdul, 2006. "Explaining the route to owner-occupation: A transatlantic comparison," Journal of Housing Economics, Elsevier, vol. 15(3), pages 189-216, September.

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    More about this item

    Keywords

    House market; stamp duty; inefficiencies;
    All these keywords.

    JEL classification:

    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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