Another fine idea

Peter Hain has come up with a brilliant idea. On the Simon Mayo Radio 5Live programme on Wednesday that "We should consider whether it would be more appropriate for the seller of a property to pay the stamp duty rather than the buyer. This would exempt first-time buyers from the charge. A move like this would be revenue- neutral, but would be an enormous boost to young people.". I despair of the thinking behind this, if indeed there was any thinking. Has the Orange One considered that maybe if the seller has to pay an extra charge and we are not talking small amounts, especially in London, then the seller might just increase the amount that they will sell the house for. So what will the Orange One's plan achieve? Definitely a further boost to house prices, is that what he really wants? Probably no difference in taxation income. Quite possibly a reduction in houses coming onto the market as sellers downsizing or leaving the property market decide they don't want to pay an extra exit tax and so don't sell; this would also tend to increase house prices as supply is further constricted.

I realise that this is a policy designed to get votes in the campaign for the Deputy Leadership of the Labour Party BUT this sort of policy floating may have repercussions.