Housing: Construction
The question
To ask the Secretary of State for Housing, Communities and Local Government, what plans his Department has to limit the purchase of new-build properties by foreign investors.
Answered by Matthew Pennycook
The government has already made changes to the tax system to reduce demand for housing as an investment opportunity for overseas investors.
Non-UK residents already pay a 2% surcharge on top of the residential rates of Stamp Duty Land Tax (SDLT) when purchasing a dwelling in England or Northern Ireland.
At the Autumn Budget 2024, the government increased the higher rates of SDLT, which are also paid by non-UK residents purchasing additional property, by two percentage points from 3% to 5%.
Increasing the higher rates of SDLT helps to ensure that those looking to move home, or purchase their first property, have a greater advantage over second home buyers, landlords and companies purchasing residential property.
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