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New homes built down 10% since Labour came to power

The rate of housebuilding has dropped by 10% since Labour came to power in July, deepening the task of increasing construction in the UK.

BBC Verify found that 107,000 new homes were recorded since last July’s election, with every region of England seeing a year-on-year reduction.

The steepest decline was recorded in the North West, of 27%.

David Hannah, group chairman of Cornerstone Tax, said: “The decision from the government to lower stamp duty bands shows a concerning deficit of joined-up thinking.

“Does this Chancellor and Prime Minister not understand that if they want 1.5 million new homes, they cannot drive landlords out of the market, incur additional charges for first-time buyers and freeze up working capital for developers – which can only be available if these homes are selling.

“I expect stamp duty receipts to fall significantly, then to flatline in Q1 2025, potentially plunging the British property market into a desperate situation. In essence, reducing stamp duty thresholds means that it will ultimately be the consumers who foot the bill.

“Furthermore, it would make sense for the new government to suspend, or even abolish, the 5% surcharge where properties are being acquired for private rental sector investment.

“Removing this measure would encourage landlords to increase their holdings, rather than exit the market – reversing the decline in the supply of rental homes and potentially expanding it to the point where demand no longer outstrips supply.”

The government has pledged to overhaul the planning system, reinstate mandatory housing targets, and invest £5 billion in housing this year, including an additional £500 million for the Affordable Homes Programme.

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