Berkeley Group has called on the UK government to implement urgent stamp duty reforms, warning that current tax rules are hampering efforts to meet ambitious housebuilding targets. The FTSE 250 housebuilder reported a slump of more than a third in home reservations as market uncertainty continues to weigh on buyer sentiment.
The company wants stamp duty caps introduced for first-time buyers and downsizing homeowners. Such measures, it argues, would help achieve the government’s target of building 300,000 new homes annually and support its broader goal of constructing 1.5 million homes by 2029.
What’s driving the caution among buyers? Berkeley pointed to prolonged conflict in the Middle East and ongoing political ce in the UK as factors dampening market confidence. Customers without immediate housing needs or readily available funds are hesitant to commit to purchases, the firm said.
The housebuilder remains on track for its £1.4 billion pre-tax profit plan but warned that some buyers may defer transactions until after the autumn Budget in October. Berkeley argued that the current stamp duty regime, introduced when interest rates stood at just 0.25%, requires immediate overhaul to address affordability challenges and stimulate housing demand in today’s higher rate environment.
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