Christian Jaccarini, an economist at the CEBR, said the inability of existing owners to take a ” second step” up the ladder – thanks largely to hefty duties – “constrains the supply of homes appropriate for first-time buyers”.
He added: “Clearly, building more houses in the first-time buyers’ price range is key, but an efficient form of taxation is important for ensuring that we make the most of the existing property stock.”
He called for a “thorough review” of stamp duty in tomorrow’s Budget, as “there are other ways of earning this tax revenue without incurring these negative consequences”.
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