The Conservative Party has come under fire after pledging to abolish Stamp Duty.

Shadow Chancellor Sir Mel Stride set out the pledge in a speech at last week’s Propertymark One annual conference.

He claimed the move would stimulate the housing market and help to boost housebuilding by as much as 25% – the equivalent of 200,000 homes in the next five years.

London estate agent and former RICS Residential chairman Jeremy Leaf welcomed the move, but questioned why the party hadn’t acted during their 14 years in power.

Stamp duty burden

He said: “Stamp Duty may be an excellent revenue raiser but the way the tax is levied means it has become a burden on job and social mobility, compromising economic efficiency and reducing liquidity.”

Tories under fire for Stamp Duty announcement.”

He suggested that the decision not to scrap the tax may have contributed to it losing the General Election.

He said: “It is better-late-than-never that the Conservatives have woken up to the impact of Stamp Duty on the market, particularly on first-time buyers who influence the overall number of transactions and have a positive multiplier effect on the rest of the economy.

“It’s a shame the Conservatives didn’t introduce this sooner; if so, they might still be in power as homes and jobs are so important to voting intentions.”

Treasury cash

He added: “Stamp Duty has become a fiscal drag as the thresholds have not kept pace with inflation, and it offers wonderful cashflow for the Treasury.

“What we have yet to hear is what might replace that income and how else we are going to suffer as a result.”

The Labour Government has promised to build 1.5 million homes in this parliament, but has so far failed to reach even close to that number.

Unfair tax

Speaking at the conference, Sir Mel said: “Stamp Duty is a terrible tax. It is a tax on aspiration, and it is a tax on productivity.

“The case against Stamp Duty is undeniable. It is an argument that is both moral and economic.

“Not only is it grossly unfair, but it is grossly distortionary as well. It is a disaster for our society, and a disaster for our economy as well.”