Berkeley Group Urges UK Stamp Duty Cut on New-Build Homes, Citing £4.2B Treasury Windfall

Berkeley Group has urged Chancellor John Healey to cut stamp duty on newly built homes, estimating the move could generate a £4.2 billion windfall for the Treasury. In its Budget submission, the FTSE-listed housebuilder called for capping the levy at 1% for first-time buyers and downsizers, and scrapping the 5% surcharge on investors in new-build rental homes. The developer warned the housing market is "sliding over an economic cliff edge," with only 8,840 private homes sold in London last year—down 56% since 2022. Berkeley calculated that removing the investor surcharge would save the typical investor roughly £13,000, requiring just 7% sales growth for the Treasury to break even. Using Office for Budget Responsibility figures, it projected at least 30% sales growth. The submission follows Greater Manchester Mayor Andy Burnham's unveiling of Your First Home, a scaled-back Help to Buy equity loan scheme. Healey is expected to formally launch the policy in next month's Budget.