The Chancellor has been urged to scrap stamp duty on all family homes in next month’s Budget by The Land Promoters and Developers Federation (LPDF).
According to the federation, removing the tax would boost the housing market, help young first-time buyers, and encourage downsizers to move.
The LPDF has called on Chancellor Rishi Sunak to use the housing sector to lead the country out of recession and deliver the 300,000 new homes needed each year.
In addition, LPDF has suggested that revaluing and reforming the “regressive and distortionary” tax could help in delivering Prime Minister Boris Johnson’s levelling-up agenda.
The LPDF believes that the tax is out of date and a tax proportional to value is likely to see a material redistribution in who pays and where they live to those areas that have experienced the most significant valuation growth in property since 1991 and to those who can most afford it.
The federation outlined that academic studies show that SDLT creates a “dysfunctional, distorted housing market by reducing household mobility, and acts as a disincentive to downsizers to move”.
Furthermore, the LPDF’s members include land promoters, major house builders, planners and leading law firms, are working with the government, local authorities and communities to enhance the planning process, and help deliver new homes.
Paul Brocklehurst (pictured), chairman of the LPDF, said: “We have written to Rishi Sunak and asked him to act immediately in relation to stamp duty on purchases of a principal residence, which is a family’s home.
“We believe stamp duty should be scrapped altogether.
“It is suffocating the housing market, as highlighted by the activity in the market with the current holiday, inhibits the ability of young people to buy without the need for parental help, contributes to reduced household mobility, which itself acts as a constraint on wider economic activity, and acts as a disincentive to downsizers.”