Sunak Set to Scrap Stamp Duty for First-Time Buyers on £425k Homes!
Prime Minister Rishi Sunak is poised to shake up the housing market with a bombshell announcement ahead of the Conservative Party’s manifesto launch. The Telegraph reveals he plans to axe stamp duty completely for first-time buyers on properties worth up to £425,000. This bold move could help around 200,000 buyers each year, giving a much-needed boost to the property ladder.
Stamp Duty Shake-Up: Higher Threshold, Bigger Impact
At present, stamp duty kicks in on properties costing more than £250,000. But from March, that threshold is set to plunge to £125,000, after a temporary relief expires. This crackdown will hit many more buyers, pushing up costs right as the market faces pressure. Sunak’s move to scrap stamp duty for first-timers on homes up to £425k aims to soften that blow.
Backing from Experts and Party Heavyweights
David Phillips from the Institute for Fiscal Studies has slammed stamp duty as “one of the most economically damaging taxes” that hikes the cost of moving home and stifles both the housing and labour markets. The new plan follows recommendations from Liz Truss’s Growth Commission and echoes Chancellor Jeremy Hunt’s promise to avoid hiking capital gains tax, council tax bands, or launching costly council tax reassessments.
Political Drama Clouds the Move
The announcement comes during a rocky week for the Tories. Penny Mordaunt, Leader of the House and Navy reservist, slammed Sunak for leaving the D-Day 80th anniversary events early, calling it “completely wrong” and demanding a heartfelt apology to veterans and the public alike. Speaking on BBC’s seven-way leadership debate, Mordaunt said Sunak’s apology was “right” and urged the party to avoid turning the gaffe into a political football.
Stamp Duty Reform: A Bid to Woo First-Time Buyers
The stamp duty U-turn is seen as a smart bid to win over first-time buyers, a key voter group Labour is targeting with its own housing policies. Sunak’s full housing plan is expected to be unveiled in next week’s Tory manifesto, putting pressure on opponents and signalling a fresh approach to tackling the UK’s housing crunch.
