Housebuilder Berkeley in stamp duty reform plea

Housebuilder Berkeley Group has urged the Government to cap stamp duty for first-time buyers and downsizing homeowners to support property demand.

The FTSE 250 company said “urgent reform” was needed to help meet a Westminster target of 300,000 new homes each year.

It specifically called for a one per cent stamp duty cap for first-time buyers and downsizers, and removal of the current five per cent investor surcharge.

The Surrey-headquartered operator added the prolonged conflict in the Middle East and ongoing UK political change have further weighed on sentiment among buyers in recent months.

However, bosses revealed it was nevertheless “receiving good and stable levels of inquiries”.

The firm said it would continue to work towards its £1.4 billion pre-tax profit plan, but was “mindful” some buyers may defer transactions until after the autumn Budget in October.

And it said an overhaul of stamp duty rules was needed to help drive high levels of housebuilding amid market pressure.

A spokesperson said: “To meet the Government’s target of 300,000 new homes per annum, and help address the cost-of-living crisis by making homes more affordable, the current stamp duty regime, introduced at a time when interest rates were 0.25 per cent, requires urgent reform.

“What was a manageable frictional cost when interest rates were at those unique and unsustainable levels, has become a binding constraint, now that interest rates have returned to more normal levels.”

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