Redrow calls for Land Transaction Tax (LTT) holiday to boost Welsh economy

Leading Welsh housebuilder Redrow is calling for the Welsh Government to introduce a Land Transaction Tax (LTT) holiday, following the stamp duty announcement in England on 8th July.

Chancellor Rishi Sunak presented an instant scrapping of stamp duty for all homes in England under £500,000 as part of his Summer Statement in a move that aims to stimulate both the housing market and the wider economy amid the Covid-19 pandemic.

However, the measure does not apply to Wales, as stamp duty was replaced by the LTT in 2018 following the devolution of certain tax raising powers.

The current regulation in Wales means that no tax is paid on the first £180,000 of a property, which increases to 3.5% up to £250,000 and 5% up to £400,000.

Wales’ finance minister Rebecca Evans has not ruled out matching the stamp duty holiday, stating on the day of the Chancellor’s announcement that she would consider the effects of the measure on the Welsh market over the “next day or so”.

Headquartered in Ewloe, Flintshire, Redrow currently has ten developments in Wales and in 2019 made contributions of £314m to local communities across England and Wales.

Matthew Pratt, Chief Executive at Redrow, comments:
“The Welsh Government has an opportunity to further stimulate the housing market as well as the wider economy across Wales.

“An immediate cut in the Land Transaction Tax would not only offer much-needed support to housebuilders and those seeking entry to the housing market, but also to the associated suppliers, subcontractors and consultants who rely on house sales and the continuation of housebuilding to remain in business.

“Wales is now entering a new phase of economic recovery and we would strongly recommend a suspension of this tax to provide the stimulus for additional spending across the country.”

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