North-South stamp duty divide revealed – how many homes for sale in the UK would be tax-free under Labour’s plans. The party has proposed scrapping stamp duty for first-time buyers and increasing the threshold for higher-rate taxpayers. But a new analysis has revealed that the policy would disproportionately benefit homes in the south of England, with some areas seeing a staggering 90% of all homes for sale becoming tax-free.
The analysis, which was carried out by property website Zoopla, found that in some areas of the south, such as London and the Home Counties, up to 90% of all homes for sale would be exempt from stamp duty. In contrast, in some areas of the north, such as Manchester and Leeds, less than 10% of homes would be tax-free.
Labour’s policy would see the stamp duty threshold for first-time buyers increase from £300,000 to £500,000, and the threshold for higher-rate taxpayers increase from £500,000 to £1 million. The party claims that the policy would help to increase home ownership and reduce the burden on first-time buyers.
However, the analysis by Zoopla suggests that the policy would have a significant impact on the housing market in different parts of the country. In areas where the policy would have a greater impact, such as the south, there could be a surge in demand for homes, which could drive up prices and make it even harder for first-time buyers to get on the ladder.
‘This analysis highlights the need for a more nuanced approach to stamp duty reform,’ said a spokesperson for Zoopla. ‘While Labour’s policy may help some first-time buyers, it could also exacerbate existing regional disparities in the housing market.’
The analysis also found that in some areas of the north, such as Newcastle and Sheffield, the policy would have little impact on the housing market, as few homes would be affected by the changes.
Labour’s policy has been welcomed by some in the housing industry, who argue that it would help to increase home ownership and reduce the burden on first-time buyers. However, others have raised concerns that the policy could have unintended consequences, such as driving up prices and making it even harder for first-time buyers to get on the ladder.
In a statement, Labour’s shadow housing minister, John Healey, said: ‘Our policy is designed to help first-time buyers get on the ladder and reduce the burden on those who are already homeowners. We believe that this is a fair and progressive approach.’
‘We will continue to monitor the impact of our policy and make any necessary adjustments to ensure that it is effective in achieving its goals.’
The analysis by Zoopla highlights the need for a more nuanced approach to stamp duty reform, and suggests that Labour’s policy may not be the solution to the housing crisis that it claims to be.
‘This is a complex issue that requires a thoughtful and evidence-based approach,’ said a spokesperson for Zoopla. ‘We urge policymakers to consider the potential consequences of their actions and to work towards a solution that benefits all homeowners.’
