In a bold move to reinvigorate the Conservative Party's appeal, leadership contender James Cleverly has proposed the complete abolition of stamp duty on residential properties. This suggestion comes as the party prepares for its first round of voting in the leadership contest, scheduled for September 4, 2024.
Cleverly, who previously served as Foreign Secretary, outlined his vision in an article for The Telegraph. He emphasized the need to remove barriers to home ownership and stimulate movement in the housing market. The proposal aims to address the UK's complex property tax system, which has been in place since 1694 and is considered one of the most intricate in the developed world.
"We need to give young people a bigger stake in our society. It's why we were right to cut stamp duty for first-time buyers. But I want our ambition to be to abolish stamp duty for residential properties completely."
Currently, stamp duty is levied on homes valued above £250,000, or £425,000 for first-time buyers. The rates increase progressively, reaching up to 12% for the most expensive properties. This system has been criticized for potentially discouraging older homeowners from downsizing and young families from upsizing.
Cleverly's proposal comes at a time when the UK housing market faces significant challenges. The average house price is approximately eight times the average earnings, making it one of Europe's most expensive markets. Additionally, the average age of first-time buyers has risen to 34 in recent years.
The leadership race is intensifying, with other candidates also presenting their visions for the party's future. Kemi Badenoch, the bookmakers' favorite, is expected to call for party renewal. Robert Jenrick, former Housing Secretary, warned of potential tax increases in the upcoming Budget. Tom Tugendhat and Dame Priti Patel have also delivered campaign speeches.
Cleverly is set to deliver a major speech on September 2, 2024, addressing what he terms a "crisis in confidence in capitalism." He plans to emphasize the need for the Conservative Party to refocus on its core values and present a clear vision for the country's future.
The Conservative Party, founded in 1834, has been in power since 2010. However, it now faces challenges in appealing to younger voters. In the last general election, voters under 60 were less likely to support the party. Cleverly's proposal aims to address this demographic shift by promoting home ownership and economic growth.
As the leadership contest progresses, the field of six candidates will be narrowed down to four by the time of the Conservative Party conference in late September or early October 2024. The outcome of this contest will be crucial in shaping the party's direction and its appeal to voters in the next general election.