Stamp Duty Land Tax (SDLT) should be paid by those selling their home rather than the buyers, as this would help first-time buyers get on the property ladder, a building society has said.
Yorkshire Building Society (YBS) said that home-owners who have already benefited from the property boom should remove the tax burden from the younger generation.
In England, Wales and Northern Ireland, buyers pay no Stamp Duty on the first £125,000 of their property, two per cent on the next £125,000, and five per cent on anything left over.
Stamp Duty for the average first-time buyer is estimated to cost around £3,791, or around £13,171 in London.
But YBS think removing Stamp Duty for buyers altogether would help around 225,000 prospective property owners get on the housing ladder in the year 2016/17.
Andrew McPhillips, chief economist at YBS, said: “More than 200,000 first-time buyers paid stamp duty last year and removing this tax burden from them would give the younger generation a major leg up the property ladder.
“The benefits would not only be felt by those looking to get on the property ladder as anyone moving up it would be better off too.
“The Prime Minister has pledged to make intergenerational support a key measure of her Government’s housing agenda and this measure could achieve exactly that.”