HOMEOWNERS in Burton and South Derbyshire could face a hike in stamp duty in the coming years, a campaign group has warned.
Stamp Duty Land Tax is charged when a property is bought for more than £125,000 and it is applied at different rates depending on the price band of the property.
Therefore, the stamp duty bill increases sharply when a property rises into a higher band.
With property prices being predicted to rise over the next five years the TaxPayers’ Alliance is warning that many more exempt homes will be subject to stamp duty when they are sold and many homes which are already subject to the change will face an even higher bill.
According to the TaxPayers’ Alliance research, in East Staffordshire, 50 per cent of homeowners are currently paying stamp duty.
However, it predicts that by 2017 this will have risen to 66 per cent.
The figures also predict that 375 homeowners will rise a stamp duty band between now and 2017 - this is a rise of 24 per cent.
In South Derbyshire and North West Leicestershire a similar rise is predicted.
In South Derbyshire, 56 per cent of homeowners pay stamp duty at the current time.
The research suggests this will rise to 76 per cent by 2017, with 415 homeowners rising a stamp duty band in that time.
In North West Leicestershire, the rise in those homeowners paying stamp duty is predicted to be 27 per cent – from 51 per cent to 78 per cent.
It also estimates a big rise in those homeowners rising a stamp duty band – a 38 per cent rise to 540.
Matthew Sinclair, chief executive of the TaxPayers’ Alliance, said: “As the property market recovers, more and more people will be sucked into paying punitive rates of stamp duty and it will be more expensive to move than ever.
“High Stamp Duty rates stop young people buying a home and starting a family, discourage elderly people from downsizing and make it harder to move to a new place for a new job.
“The Government urgently need to cut stamp duty and ease the burden before the situation gets even worse.”