Labour Tax Double Whammy Killing Housing Demand – Guido Fawkes

Labour Tax Double Whammy Killing Housing Demand

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Labour’s pledge to deliver more “affordable homes” in the housing market is faltering, as their policies seem to be dampening demand without addressing the core issue of supply. Last week saw Labour’s ‘Awful April’ bills come into effect, with stamp duty thresholds slashed from £250,000 to £125,000 for most buyers, and £450,000 to £300,000 for first-time buyers. Council tax has not only risen by an average of 5%, but council taxes on second homes have doubled – prompting a sell-off of second homes. Though while the Treasury’s coffers are filling up, buyers remain hesitant…

House prices have edged up slowly, rising just 1% in the year to March, partly due to homeowners opting to sell amid Labour’s tax hikes. However, as Zoopla points out, demand isn’t keeping pace with supply: “Buyer demand in southern England is higher than a year ago, but it is failing to keep up with the growth in supply.” On the supply side of things Labour has rolled back on its election pledge to build 1.5 million homes, citing the old “difficult inheritance,” all while Reeves piles pressure on Rayner to use further planning reforms to boost growth in the Spring Statement. It’s a tax collection game in the meantime…