“It is equally clear to me that the British people did not vote on June 23 to become poorer, or less secure.” In the aftermath of the Brexit referendum, the British Chancellor, Philip Hammond as UK Minister of Finance implied what would have been his approach towards the detachment from the EU. So, soft exit manoeuvres (such as the comprehensive free trade agreement) together with internal measures capable to control potential economic repercussions.
The recent abolition/ reduction of stamp duty on the acquisition of a first home moves forward this direction. The measure included in the Autumn Budget 2017 removes the duty for purchases within 300 thousand pounds and reduces it for quotations higher than this threshold and keeps it as allowance.
It has been estimated that this facilitation will relieve around 80% of buyers and will be less onerous for 95% of purchasers. For instance: assuming a cost of £ 500 thousand, buying a house in London could generate savings of half the tax- amount than today: from £ 10.500 to £ 5.500 thanks to the total allowance on the first 300 thousand pounds and the reduction on the remaining 200 thousand.
The fiscal news will have an impact on several economic sectors linked with the house system. According to many observers, one of the most involved sector is the furniture one which will benefit from savings obtained with these concessions. Even though some research institutes such as Resolution Foundation foresee an income compensation, caused by a house price increase of 0,3%.
But Hammond’s prediction about residential construction may reserve other possibilities for furniture world in the medium term. The Chancellor of the Exchequer has also announced a plan for the construction of 300 thousand new houses by mid-2020: an aim which would be the largest housing increase in the UK on an annual basis since 1970.