Scrapping stamp duty for first-time buyers ‘counterproductive’

26th January 2018

Philip Hammond's decision to scrap stamp duty for first-time buyers is likely to lead to a sharp rise in house prices, MPs on the Treasury select committee predict. The MPs fear the policy is likely to increase prices for first-time buyers "by as much, if not more, than the amount they will save as a result of the reduction in stamp duty". Their report is also sceptical of the targets of building 300,000 new homes a year, estimating that Mr Hammond would only meet this if he takes more action such as lifting a borrowing cap on councils that restricts the number of homes that local authorities could deliver, while private housebuilders create only around 150,000 homes a year.

The Times (22/01/2018)