Generation Brexit

Housing for residents, not overseas investors

hawthoa | 11 months ago | in Our common future after Brexit

Post-Brexit, the government should create a stamp duty add-on for home buyers that are neither UK citizens nor UK tax residents.

High prices lock UK residents and citizens out of home ownership in many parts of the country. High prices in turn push up rents. The argument that extra investment stimulates supply does not really work for UK housing. Supply is inelastic, so extra demand mainly drives up prices.

The add-on should be higher than the one for second home buyers, which is 3% at time of writing. I think it should be much higher (say 30%), but anything over 3% would be good to have.

Evie J 11 months ago

I can see why you would suggest this, but how could the government impose this without being unpopular with those who are not UK citizens or tax residents?

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hawthoa 11 months ago

The government doesn't need to worry about being unpopular with them. They don't have votes here.

That might sound harsh. The goal isn't to be punitive, but it's better to tax other countries' 1 percenters than UK workers.

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Clara Oakley 4 months ago

Although, surely you could argue that these investors may be bringing work with them and are contributing to the economy. Isn't it important to keep up some relations with foreign business men and women when we are potentially losing out on trade with other nations?

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Owen Brown 11 months ago

It will be interesting to see how the new New Zealand government's experiment with this works out in the long run. Are there any other countries that have done this? I'd never heard about the idea until this last year.

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Martha Eckersley 10 months ago

I'd never heard of this idea either until recently, but it sounds interesting. Do you think then that if this was enforced and went to plan, that it would have a positive effect on first time buyers?

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hawthoa 10 months ago

I do. It would be a significant step in the right direction.

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Martha Eckersley 10 months ago

Fingers crossed something like this is enforced then!

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