Home mover comparison service Reallymoving has urged the government to increase the foreign buyer stamp duty surcharge from 2% to 3% in the upcoming Autumn Budget.
The firm argued that it would reduce competition from overseas, keeping house price gains in check.
Rob Houghton, founder and CEO of reallymoving, said: “An additional 1% stamp duty surcharge for non-UK residents, coming on top of the existing 2% surcharge they already pay, will help reduce the numbers of overseas investors competing against first-time buyers for limited stock.
“This demand has undoubtedly contributed to UK house price inflation in recent years, particularly in our cities, pushing home ownership for young people even further out of reach.”
In terms other recommendations, the company joined others in suggesting that the higher stamp duty threshold for first-time buyers should be made permanent.
As it stands the minimum threshold where first-time buyers start paying the tax will drop from £425,000 to £300,000 in April 2025.
Reallymoving warned the government about increasing Capital Gains Tax, saying it could serve to further shrink the private rental sector.
Houghton added: “Landlords are already leaving the sector in droves, and a hike in Capital Gains Tax will be yet another deterrent for anyone thinking of investing in property.
“People rent for a multitude of reasons and a strong and affordable private rental sector is absolutely central to the health of our housing market.
“It worries me that these rental homes will not be replaced, creating more competition among tenants and pushing rents even higher.”
The Autumn Budget takes place on October 30th.
