The Conservative Party is continuing to promote its proposal to scrap stamp duty on primary homes, as part of its wider housing market policy platform.
Party leader Kemi Badenoch first put forward the idea in a speech at the end of the Conservative Party conference in October last year, presenting it as a measure aimed at supporting home ownership and increasing housing market activity. Since then this proposal has remained a part of the party’s policy discussion.
At last year’s conference in Manchester, Badenoch said removing stamp duty on primary residences would help more people get onto the housing ladder and improve mobility within the market.
Shadow Chancellor Sir Mel Stride has since pushed back on the proposal, arguing that stamp duty is reducing transaction levels and acting as a barrier to movement in the housing market.
In March, Stride visited Winkworth’s Pimlico office in central London, where he discussed the policy as part of the Conservatives’ wider approach to housing taxation. During the visit, organized by Winkworth chief executive Dominic Egges, he said the removal of stamp duty would support market activity and broader economic performance.
Stride has continued to promote the proposal along with industry involvement, arguing that stamp duty is restricting housing transactions.
Stride has returned to work with Winkworth to help convey his and the party’s position on the issue.
Stamp duty is “boosting the housing market,” he said.
In the latest episode of Winkworth’s Property Exchange podcast, the Shadow Chancellor described stamp duty as “the most economically damaging tax ever”.
In conversation with Winkworth chief executive Dominic Egges, Stride told the podcast: “Stamp duty hurts aspiration and the economy. And it affects the majority of people in England. It’s not just a London problem. The social consequences are far-reaching, from first-time buyers to elderly people living in homes they can’t afford. It’s blowing up the housing market. The Conservatives would get rid of it and finance it by cutting the benefit bill, down to size. Will reduce. Cut the civil service and foreign aid to 2016 levels.
“This will not be a tax cut for the ultra-wealthy. It will enable people to access every level of the market. The majority of people affected by stamp duty do not live in London and most transactions are under £500,000.”
He added: “Every property transaction drives economic activity for plumbers, builders, retailers and all businesses involved in setting up a home.”
He also warned the government against “flying kites, as we saw recently in the case of fare freezes with rumours. The damage these rumors do is serious and long-term.”
Ageas explained how stamp duty has reduced take-home numbers. He told the podcast: “It’s devastating to transaction levels and is impacting all activity in the property market. There were 72,000 transactions last year, compared to 140,000 a few years ago.”
“The effects are slowing down the whole economy. Young talent is moving elsewhere to buy their first property. We have young families who are stuck in very small flats and elderly people living in one room. They can’t afford the bills and can’t afford to move because they are afraid of losing the money they need for their pensions.”