Key facts
- Berkeley Group has urged the UK government to cut stamp duty on newly built homes.
- The housebuilder estimates a stamp duty cut could generate a £4.2 billion windfall.
- Berkeley Group stated that cautious buyers are delaying transactions until after the October budget.
- The company suggested a 1% cap and removal of a 5% investor surcharge on stamp duty.
One of Britain's largest housebuilders, Berkeley Group, has called on the government to reduce stamp duty on newly built homes, estimating that such a measure could generate a £4.2 billion windfall. The company argues that cautious buyers are delaying transactions due to economic uncertainty and the upcoming October budget, leading to depressed market activity.
Berkeley Group suggested that implementing a 1% cap on stamp duty and removing the existing 5% investor surcharge would benefit first-time buyers and bolster housing supply. The housebuilder also noted that HMRC's own assessments indicate that more tax revenue is lost through subdued activity than is gained through stamp duty on new builds.