A top Tory who is chair of the Conservative backbench Treasury Committee and a member of the Treasury Select Committee says stamp duty should be increased for landlords and holiday home buyers - and scrapped for everyone else.
Anthony Browne MP, writing on the Conservative Home website, says stamp duty for the mainstream housing market is a tax on transaction, and stops mobility around the country and up the property ladder.
“Making moving house expensive means that millions of people live in inappropriate housing – either too big or small, or in the wrong place – not least the empty-nesters, who don’t want to pay thousands in tax in order to downsize. People don’t take jobs in other parts of the country because they can’t afford to move, so making the labour market less efficient” he says.
But the arguments he carefully deploys for abolishing the tax for home buyers do not apply, he insists, when it comes to investors or second home purchasers.
So he goes on to say: “Last year, of the £10 billion residential raised by residential stamp duty, nearly half (£4.6bn) came from property transactions incurring the higher rate. This rate could be increased further, and flat rated, with the revenues being used to cut stamp duty for people buying homes to live in.”
And he adds: “In some parts of the country, second homeownership is so rampant that it causes massive damage to local economies and communities. Stamp duty should be a flat rate whatever the value of the property if people are buying it for any reason other than to live in.”
As Browne’s piece appeared on the Conservative Home website, so it was revealed that buyers paid out a record total of £16.2 billion in stamp duty last year - this was no less than 23 per cent more than 2021.
Coventry Building Society’s analysis of HMRC figures show that 2022 included eight of the top 10 highest months ever on record for stamp duty returns.
Jonathan Stinton, head of mortgage relations at Coventry Building Society, says: “Last year people paid more tax buying their homes than ever before. The new thresholds introduced in September mean homebuyers will get a bit of welcome relief for the next couple of years, but a long-term plan needs to be established.
“The Chancellor has already hinted that it’s going to be a bland budget this Spring, with no tax cuts expected to be announced, but discussions around stamp duty shouldn’t be taken off the table. We’ve already seen that the fairly blunt instrument of a stamp duty holiday in 2020 and 2021 didn’t stifle tax revenues. Taking a creative approach to stamp duty reform, with incentives for energy efficient home improvements, for example, could create better outcomes for everyone.
“Allowing a stamp duty waiver for downsizers could be another option on the table. There are over 9 million households in England with at least two spare bedrooms, if these people want to move to a smaller home they could be hit with a tax bill for thousands. That’s an extra cost which could prompt more people to stay."
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It should actually read, "so-called Conservative".
Agreed - in this country we now have red Labour and blue Labour - for your convenience it’s been simplified and now you just vote for the colour you like best.
The only way to tell the difference now is "Tory" MP's speak posher than their equally leftie MP colleagues in all the other parties.
It used to be that Labour MP's got involved in Money scandals and Tories in Sex scandals.
It looks as if that difference might have gone now too!
Perhaps just [ay stamp duty, or receive credit, on the price difference between the two properties?
He is Labour in disguise 🥸. It would just mean even fewer properties to let, more homeless for the councils. If they actually built some new council housing and stopped selling off what they have….. but they won’t.
Yes they sold off the stock and now have these awful housing associations dealing with homes instead. These associations do not maintain the houses properly and ignore the tenants when they have problems. Private landlords need to be viewed separately from these housing associations as they are far more responsible and responsive!
If you don't already subscribe to Joe Halewood (Speye Joe) may I suggest you google him and read his latest blog. He demonstrates just how unaffordable social housing is for those that live in it.
A G - I think it fairer to say that SOME (or most) housing associations are awful, and MOST private landlords are far more responsible.
I wish these politicians would inform themselves before making these ridiculous statements in an environment where many millions of people are dependent on rented accommodation for a variety of reasons. Stop landlord-bashing and do your job properly!
Kill the PRS even more why dont you - ignorant politician!
Virtually all property related taxes are just pure greed based on the politics of envy and misguided assumptions.
Bearing in mind VAT is paid on just about every element of buying, selling and maintaining property why does SDLT need to exist at all? A fixed Land Registry fee is totally understandable but SDLT just stifles mobility.
He may have a valid point when he says: “In some parts of the country, second homeownership is so rampant that it causes massive damage to local economies and communities. Stamp duty should be a flat rate whatever the value of the property if people are buying it for any reason other than to live in.”
That only really applies to SECOND homes that are only used when someone is on holiday. Standard BTL properties are PRIMARY residences for their tenants. It is wrong to disadvantage half the population purely because they rent their home (often from choice because their job requires far greater mobility than the conveyancing process would allow). Wasn't one of the biggest problems in the areas he was referring to a lack of standard BTL? Nowhere for low paid local families or seasonal workers to live. Didn't thousands of small businesses fold because they couldn't get staff as there was nowhere for them to live?
So it is widely reported that the disparity between supply and demand in the PRS is causing massive issues. I wonder if Mr Browne reads the news.
Another Commons Clown enjoying the National Pass time of bashing landlords who provide homes for people to live in.
What could be more important at a time of national need.
The stamp duty was doubled for landlords already and removed for first time on new properties which didn’t help them one iota, when the Developers upped the price to take advantage of this, never mind they’ll have 35 years to reflect on their mistake, lasting far longer than their partners.
I am sick of being continually reminded how dumb most politicians are compared to the average btl landlord. I have been trying to sell a house for the last 3 months. The only interest has been from investors. Where are all these first time buyers they think are queuing up?
My children are looking, but nothing much is coming up…. 🤔
I’m a bit confused, why do landlords have to fund people getting jobs around the country and allowing people to move more freely? Isn’t this something for the general tax system to do, sharing the burden across the whole economy? Yet again, a swipe at landlords as though we are second class businessman!
They really want to get shut of the PRS don’t they.
Over the last few years the Government and Councils have one way or another been chipping away at the PRS
Don’t they have the brains to realise the massive issues that are now speeding down the road towards them.
I’ll help them out.
PRS LLs provide a massive amount of the rental accommodation in the UK.
LLs are selling up in their droves and mostly to private buyers.
This means less properties available to the PRS.
This means higher rents all round.
Where are they going to put all the PRS Tenants when they inevitably become HOMELESS?
Well I’ll tell you.
Into B&Bs and cheap hotels of which the Government and Councils will have to pick up the massive bill.
Or will they just allow FAMILIES to sleep on the streets?
I’m selling up my rental properties and will never rent another property again.
It was going to be when a tenant moves out I’ll sell that particular property for CGT allowance reasons but now my mind set has changed and they will just go quicker.
I can put my money into other options that give me less grief and better returns.
What a Clever Government and Councils we have. NOT
Stamp duty should be abolished for everyone.
Start a petition and I'll sign it.
The government - “landlords are greedy”
Also the government - “when you buy something I should get a cut, when you profit from what you’ve bought - I should get nearly as much as you, when you sell it and it’s gone up in line with inflation - I will pretend that’s profit and demand a cut. I will squander all this money on things nobody wants and pretend you are the problem. Oh and if you make a loss, you’re on your own!”
Renters - “why are there no properties available to rent???”
Exactly.
Another ignorant leftist tw*t who no doubt simultaneously complains about how those ‘greedy landlords’ keep pushing rents up! All without the slightest irony or self-awareness. Absolute moron.
I wonder how many shares this chap has in “Build To Rent” companies?
I remember the days when the conservative party was actual opposition
Labour Lite , at best
Yet another proof what dimwits we have not just as MPs but in select committees as well, especially in Treasury select Committees. I think. no, I know any moderate 16 to 18 year old lad or lass will have more common sense than this "brain surgeon". I apologise that for a moment I forgot that he is an MP, i.e. DO NOT TAKE YOUR BRAIN TO WORK IN CASE IT GETS WORN OUT!!
The first major priority is that ALL MPs should campaign for a complete disclosure of ALL MPs interests and complete transparency of their racketeering & ratcheting up of expenses - Complete open book!! One last suggestion their pay should be adjusted National average wage + 10%; maybe some will suggest -10% . 90 to 95% of them are parasites anyway so they will survive
What a load of rubbish. So landlords aren't buying properties for people to live in?? We just keep them empty for a laugh?? Yes some foreign investors might do that. Scrap SDLT except for foreign investors.
He misses the point if he is trying to argue that each dwelling should be a home for somebody to live in. If a homebuyer should be exempt from SDLT as they plan to live there, so should landlords for providing someone a home to live in, the same should apply if thats the ultimate goal with only 2nd homes that are not someones main residential address being the only category highlighted for increased taxation. You might find Andrew that the PRS then starts expanding once more, creating more homes for people. Win win.
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