Key facts
- Berkeley Group has urged Andy Burnham to reform stamp duty.
- The housebuilder argues stamp duty has become a "binding constraint" on the housing market.
- Berkeley proposes capping stamp duty at 1% for first-time buyers and downsizers.
- The company also calls for the removal of the 5% surcharge on investors.
- Berkeley claims reduced transaction levels are costing the Treasury more in lost tax receipts.
- The firm stated London is delivering less than 10% of its annual government housebuilding target.
Berkeley Group has called for "urgent reform" of stamp duty, arguing that the current tax regime has become a "binding constraint" on housebuilders and the broader housing market. The company is urging potential Prime Minister Andy Burnham to implement changes, including capping stamp duty at 1% for first-time buyers and downsizers, and scrapping the 5% surcharge on investors.
According to Berkeley, the reduced transaction levels resulting from the current stamp duty system are costing the Treasury more in lost tax receipts than the regime raises from new-build sales. The housebuilder believes that these proposed measures would help first-time buyers, encourage older owners to downsize, and support investment in rental properties. Higher transaction levels, in turn, would improve the viability of new schemes and support the delivery of affordable housing alongside private homes.
Berkeley also expressed support for the government's recent planning reforms, particularly those aimed at developing brownfield sites in London. However, the firm warned that a more consistent pro-development approach is still needed at the decision-making stage for individual schemes. Faster planning and lower regulatory costs, combined with stamp duty reform, could create the necessary conditions to restart stalled projects and increase housing delivery across all tenures.
Rob Perrins, executive chairman of Berkeley Group, stated that London is on course to miss its housing targets, delivering less than 10% of its annual government goal. He warned that there is "no prospect of material improvement" in housebuilding without more decisive government intervention, such as tax cuts and the removal of regulatory burdens. Perrins also highlighted that excessive stamp duty is a key factor curbing demand from prospective buyers.