Theresa May has revealed plans for a new tax on foreign property buyers, the proceeds of which will be spent on dealing with homelessness.
Speaking on the Andrew Marr programme on Sunday, the prime minister said that, “we are very concerned about the impact that foreign buyers have on the housing market and the impact they have on people who are living here and trying to get into the housing market… the evidence is that foreign buyers coming in pushes house prices up and lowers home ownership here.”
May added that a surcharge of between 1 per cent and 3 per cent on top of stamp duty would stop foreign buyers from driving up UK house prices, and that “the money we raise from this extra stamp duty is going to be spent on dealing with the issue of rough sleeping.”
Further details are unclear at this point, although Conservative party chairman Brandon Lewis told Sky News that, “we are going to consult on the figure but around 1 per cent, we are going to consult to see if that’s the right figure.”
Last Monday, during the Labour party conference, shadow housing secretary John Healy made a speech in which he stated that a Labour government would introduce a levy on second homes and holiday homes.