The Conservatives have pledged again to abolish stamp duty on primary residences, arguing the tax is choking housing market activity and preventing families from moving to homes that suit their needs.
Writing in The Times in a new intervention on housing policy, Shadow Chancellor Sir Mel Stride says stamp duty has become a barrier to mobility, reducing transactions, limiting supply and making it harder for buyers to move up the ladder.
He claims the tax discourages downsizing, stops first-time buyers progressing and prevents workers relocating for jobs, ultimately slowing the wider economy.
Sir Mel (main picture, inset) says: “In Britain we have a tax that punishes ambition, traps families in the wrong homes and freezes our housing market: stamp duty. It is a punitive tax on moving house. And that means it is a tax on living your life.”
PUNISHMENT TAX
He adds: “It punishes the young couple trying to buy their first home, the growing family who need another bedroom for a new baby, the worker who wants to move across the country for a better job.
“And it punishes pensioners who would happily downsize, freeing up larger homes for younger families, but who cannot afford the tax bill.
“The result? Fewer people move. Fewer homes come on the market. And the ladder of home ownership becomes harder to climb.”
Stride argues that removing stamp duty would increase housing transactions and stimulate economic activity linked to moving home, including spending on trades, furnishings and renovation work.
ABOLISH STAMP DUTY
He also cites Office for Budget Responsibility analysis suggesting that higher stamp duty reduces transaction volumes, and said the tax burden on a typical £300,000 home has risen significantly in recent years.
The Conservatives say a future government would abolish stamp duty on main homes entirely, with the estimated £9bn annual cost to be funded through spending reductions, including planned welfare reforms.
Sir Mel says: “We Conservatives believe owning your own home gives you a real stake in society… a future Conservative government will abolish stamp duty on primary residences altogether.”
Property Soup reported earlier this week how the Conservative Party has launched a petition calling for stamp duty to be scrapped on main homes as the debate over property taxation returns to the centre of UK housing politics ahead of the next General Election.
