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Tory MPs call on Chancellor to scrap downsizer stamp duty – report

  • 26/02/2024
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Tory MPs call on Chancellor to scrap downsizer stamp duty – report
A group of Conservative MPs have asked the Chancellor to consider getting rid of stamp duty for people who want to downsize in the upcoming Spring Budget.

Writing for The Telegraph, Damian Green, chairman of One Nation Caucus, Matt Warman, vice chairman and Stephen Hammond, senior member, said a tax on foreign property investors who buy luxury flats could pay for the abolition of stamp duty for downsizers. 

On the number of investment properties held by foreign buyers, they said “these represent too much of the market, especially in London”.

The MPs also proposed allowing first-time buyers to put 25 per cent of their tax-free pension savings towards a house deposit. 

Green, Warman and Hammond wrote: “With the tax burden at the highest rate in over 70 years and getting on the housing ladder seeming ever more out of reach, young people are having a harder time than ever.  

“Homeownership has always been a core Conservative mission, but these days even leaving your parents’ home to rent somewhere is impossible for too many.”  

The MPs also said local authorities that meet housing delivery targets should be rewarded with 15 per cent of the stamp duty collected from sales if they achieve 100 per cent of the target within four years. They proposed that this be raised to 25 per cent if more than 125 per cent of the target was reached. They suggested this would encourage the development of homes. 

One Nation Caucus has more than 100 members. 


Help for housing market 

The Spring Budget announcement will be made on 6 March and a number of suggestions have been made by stakeholders across the industry, including bringing back Help to Buy or a similar scheme. 

Regarding the housing sector, it has been rumoured that the Chancellor will put forward a scheme for a 99 per cent mortgage meaning buyers will only need a one per cent deposit with a loan backed by the government. 

Some have welcomed the idea, saying it will help potential homeowners, while others have described it as a “policy-grabbing waste of space”. 

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