One of Britain's largest housebuilders, Berkeley Group, has urged the Chancellor to implement stamp duty cuts on new homes. The developer claims these reforms could boost sales and generate an additional £4.2bn for the Treasury.
In its Budget submission, Berkeley Group called for a package of stamp duty changes, warning of a sharp slowdown in new-build sales. The proposals include capping stamp duty at 1% for first-time buyers and downsizers purchasing new homes, and removing the 5% surcharge on investors for new-build rental properties.
The developer estimates these measures could help unlock an additional 60,000 homes a year. Berkeley's calculations suggest that removing the 5% surcharge could increase sales by at least 30%, potentially generating a £4.2bn boost for the Exchequer through additional activity.
Rob Perrins, executive chairman of Berkeley Group, stated that a stamp duty reduction on new-builds, particularly for investors, first-time buyers, and downsizers, is the "best and quickest lever" to restart homebuilding in urban areas.