Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of reducing the stamp duty tax-free threshold for first-time buyers on rural housing affordability in West Dorset constituency.

In September 2022, the previous government announced a change to the level at which purchasers of residential property start paying Stamp Duty Land Tax (SDLT), from £125,000 to £250,000. This change was made temporary in November 2022, and the rate will revert to £125,000 on 1 April 2025. For first-time buyers, the nil-rate band is currently £425,000 and the purchase price limit for accessing the relief is currently £625,000. After the rates revert, first time buyers will still benefit from paying no SDLT up to £300,000 and will be able to claim relief on purchases up to £500,000.

At Autumn Budget 2024, the higher rates of SDLT for additional dwellings were increased by two percentage points from 3% to 5%. This measure will 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. The OBR certified costing estimates that increasing the higher rates of SDLT by two percentage points is expected to result in 130,000 additional transactions over the next five years by first-time buyers and other people buying a primary residence.

Regarding the impact of SDLT on local business sustainability, lower, non-residential rates of SDLT apply to purchases of commercial properties and are not affected by the upcoming reversion of the main rates and first time buyer rates on 1 April 2025.

The Government will introduce a permanent Mortgage Guarantee Scheme to help buyers who are struggling to save for a large deposit. As set out in the Autumn Budget, we will announce further details of the scheme in Phase 2 of the Spending Review

On housing more broadly, the Government has committed to delivering 1.5 million new homes as part of its mission to achieve economic growth across the country. The Government is reforming the National Planning Policy Framework to get Britain building, including by reintroducing mandatory housing targets and changing Green Belt policy to bring low-quality land into scope for development.