A Conservative MP says the stamp duty cut announced in the now-legendary mini-Budget at the end of last month should not apply to anyone buying an additional home.
Steve Double, the Tory MP for St Austell and Newquay in Cornwall, has long campaigned for stronger planning powers to stop existing or new homes being used as holiday properties or Airbnb-style short lets. He claims they diminish the housing stock and add to the pressure on house prices, which can then become unaffordable to local residents.
Former Chancellor Kwasi Kwarteng increased the point at which Stamp Duty is charged on property purchases from £125,000 to £250,000 for home movers. The threshold for first-time buyers increased from £300,000 to £425,000 and can be used on purchases worth up to £625,000.
However, Double wants the windfall restricted to primary home purchasers.
He has told the Commons: “The last stamp duty holiday during the pandemic fuelled demand for second homes and that pushed house prices even further above the average level. So even fewer people in Cornwall could afford homes.
“If this latest cut goes ahead, it should be allowed only for primary residences … otherwise … we’ll once again fuel investment purchases of homes in areas like Cornwall.”
Cornwall is one of the areas under investigation in a government review into the effect of short-term holiday lets.
An enforcement proposal put forward by the government – but not yet confirmed – suggests physical checks of Airbnb and other short let premises to ensure regulations in areas including health and safety, noise and anti-social behaviour are obeyed.
Further measures the government is considering include a registration ‘kitemark’ scheme with spot checks for compliance with rules on issues such as gas safety, a self-certification scheme for hosts to register with before they can operate, and better information or a single source of guidance setting out the legal requirements for providers.