Berkeley urges Burnham to fast-track sweeping stamp duty overhaul

Berkeley told shareholders that stamp duty has become a binding constraint on both builders and buyers, contributing to a slump in new-home demand. The company blames the tax for making first-time purchases unaffordable and for deterring existing homeowners from relocating. It recommends a one-percent cap for first-time buyers and those moving to smaller homes, and the removal of the five-percent surcharge on investors.

The firm links drastic reform to Labour’s goal of delivering 1.5 million homes by the next election, noting that the tax was set when interest rates were far lower. Berkeley also welcomed the Prime Minister’s acknowledgment of housing’s role in economic growth and warned that the Iran war is worsening its outlook. Shares closed largely unchanged at 2,296p.