Conservative Shadow Housing Secretary Katie Lam has proposed abolishing Stamp Duty and removing the Future Homes Standard as part of a wider package of housing reforms.
The proposals, announced at the Conservative Party’s annual conference, are intended to reduce the cost of building new homes by as much as £50,000.
Lam also wants to simplify the system used to fund local infrastructure by replacing Section 106 agreements and the Community Infrastructure Levy with a single charge on developers.
The plans would also involve reducing some of the regulations currently affecting housebuilders, with the Conservatives arguing that this could help increase housing supply and make new properties more affordable.
Conservatives Clarify Renters’ Rights Act Comments
Lam also faced questions about the Renters’ Rights Act during a Centre for Policy Studies fringe event.
When asked about the legislation, she was reported to have said: “I don’t care where it comes from. It’s got to go.”
The Conservative Party later clarified that Lam was referring to difficulties the legislation has created for landlords rather than announcing a policy to repeal the Act.
The clarification comes as landlords continue to assess the impact of changes introduced under the Renters’ Rights Act and consider how the new rules could affect their property portfolios.
Property Industry Welcomes Focus on Supply
Propertymark has broadly welcomed the Conservatives’ focus on increasing housing supply and simplifying the planning system.
Timothy Douglas, the organisation’s Head of Policy and Campaigns, said property professionals regularly see how delays, complicated processes and uncertainty around planning can increase costs and slow development.
He also said abolishing Stamp Duty could remove a major obstacle for people looking to move home and potentially improve mobility within the housing market.
However, Douglas warned that removing the Future Homes Standard would need to be considered carefully.
Questions Over £50,000 Saving
The proposed reduction in new-build costs has also prompted questions over whether the claimed £50,000 saving would actually be passed on to buyers.
Propertymark said the figure would need to be tested to establish how much of any reduction in construction costs would ultimately benefit consumers.
Douglas stressed that reducing costs should not come at the expense of building quality or standards. He said policymakers would need to find the right balance between affordability and maintaining appropriate requirements.
He also warned that changes to the planning system alone would not resolve the UK’s housing shortage.
The success of the proposals, he argued, should ultimately be measured by whether they result in more homes being built and improve affordability for first-time buyers and renters.
Potential Impact on the Property Market
The proposals represent a significant potential change in Conservative housing policy, although they would only be implemented if the party returned to government.
Abolishing Stamp Duty could have a substantial effect on the cost of buying and selling property, potentially influencing decisions around moving home and the wider housing market.
Meanwhile, changes to planning rules, developer contributions and construction standards could affect how quickly new homes are delivered and how much they cost to build.
For now, the proposals remain part of the Conservatives’ wider housing policy agenda, with their potential impact depending on whether the party is able to implement them in government.
Download NOW
4 Simple Steps To Becoming Wealthy Through Property