Another reason why buying a home here in the UK is a fool's game - up to 4% "stamp tax" every time you buy.
So buy that £500,000 home (you know, a 1-bedroom closet), and you're already down £20,000, plus your estate agent fee and other closing costs, say another £20,000.
All this does is makes people less inclined to move (i.e. afraid to move), as they know buying a new place is gonna hurt on taxes and fees. Which helps freeze up the market, likely helping drive up prices to the crazy point they're at today.
Ah, you gotta love it when government policy distorts a market.
Increased stamp duty has made house prices more volatile and reduced property transactions by as much as 500,000, according to research.