General Election 2019: Tories to up stamp duty for non-UK residents
Foreign residents will be slapped with a higher rate of stamp duty than UK home-owners under a Conservative government, as part of efforts to tackle the country’s housing crisis.
A three per cent surcharge will be levied on companies as well as individuals buying property who are not UK tax residents, the Tories will announce today.
Read more: Conservatives go head-to-head with Labour on housing
The revenues raised from this new tax – estimated to be around £120m a year – will be used to tackle homelessness.
A recent study showed that 13 per cent of new London homes were bought by non-residents between 2014 and 2016.
Chief Secretary to the Treasury, Rishi Sunak, said: “Evidence shows that by adding significant amounts of demand to limited housing supply, purchases by non-residents inflate house prices. That is why we are introducing a higher rate of stamp duty for non-UK residents that will help to address this issue .
“Britain will always be open to people coming to live, work, and build a life in this great country. The steps we are taking will ensure that more people have the opportunity of a great place to live and build a family.”
Yesterday the Tories revealed plans to introduce a new mortgage with long-term fixed rates, with only a five per cent deposit, in a bid to help renters buy their first homes.
The Tories will also create a scheme where local first-time buyers will be able to get a 30 per cent discount on new homes in their area.
But plans to tinker with the mortgage market has raised eyebrows among some commentators.
Torsten Bell, chief executive of Resolution Foundation, said: “It’s a massive deal if they’re overruling the Bank of England on regulation or getting on the nationalisation bandwagon with state-backed mortgages.”
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