Rishi Sunak's Pledge
Rishi Sunak is set to announce the abolition of stamp duty for first-time home buyers in an election manifesto pledge. This move is aimed at helping those getting onto the property ladder, allowing them to avoid the tax on properties bought for under £425,000.
Impact on New Home Buyers
The change means that new home buyers will not have to pay any stamp duty on houses under £425,000, potentially benefiting around 200,000 new households each year.
Conservative Manifesto
Prime Minister Rishi Sunak is expected to release the full Conservative manifesto later this week, with the stamp duty cut being a key feature. The move is part of Sunak's strategy to appeal to young voters and build credibility on tax cuts.
Previous Policies and Estimates
This new policy builds on previous temporary measures introduced by Liz Truss and Kwasi Kwarteng, raising the threshold price for first-time buyers to avoid the tax from £300,000 to £425,000. Previous Treasury estimates suggest the cost of this policy to be around £1 billion, with the majority of first-time buyers falling under the £425,000 threshold.
Looking Ahead
The full manifesto is set to be launched next week, providing an opportunity for further policy changes. Sunak's focus on tax cuts and targeted measures to support first-time home buyers reflects the Conservative Party's priorities leading up to the upcoming election.
