The Conservatives have pledged again to scrap stamp duty as part of a housing shake-up designed to make it cheaper to buy and build homes.
Shadow Housing Secretary Katie Lam (main picture, inset) used the Conservative Party conference in Birmingham to set out plans to remove barriers to development and reduce the costs facing homebuyers and housebuilders.
The package includes replacing Section 106 agreements and the Community Infrastructure Levy (CIL) with a single developer levy and scrapping the Future Homes Standard.
The Conservatives claim their wider deregulation programme could cut the cost of delivering a new-build home by as much as £50,000.
STAMP DUTY
Lam has described stamp duty as her “single most hated tax”, arguing that the transaction tax creates barriers for people trying to move home.
Scrapping it would represent a major change to the costs faced by buyers and potentially affect mobility throughout the housing market.
The Conservatives are also proposing to reduce regulations and planning barriers they argue have increased the cost and slowed the delivery of new homes.
£50,000 CLAIM
Propertymark welcomed the focus on housing supply and simplifying planning but questioned whether claimed development savings would ultimately reach buyers.
Timothy Douglas, Head of Policy and Campaigns at Propertymark, says: “Scrapping Stamp Duty would also remove a significant barrier to moving home and could help improve mobility across the housing market.”
However, he cautions against abolishing the Future Homes Standard without considering the consequences.
Douglas adds: “The £50,000 saving claim will also need to be tested against whether those savings reach consumers.
“Furthermore, policy makers must not make cost saving at the expense of quality and standards, a balance will need to be struck.”
