INTRODUCING stamp-duty exemptions to boost housing transactions would be “unaffordable”, according to the Treasury Minister.
Deputy Elaine Millar argued that the housing market was “slowly recovering”.
She said there were a greater number of transactions against previous quarters and that stamp duty revenue was higher than it was this time last year.
In March, it emerged that overall stamp-duty revenue had continued to fall by millions of pounds in 2023, despite the government introducing a 3% rise in stamp duty payable on the purchase of homes that were not going to be the buyer’s primary residence.
Stamp duty returned £39.5 million last year – compared to more than £46 million in 2022 and over £54 million in 2021.
Broadlands director Harry Trower warned that the extra tax on the purchase of second homes had been “destroying” investor interest in the market – and suggested that a stamp-duty “holiday” would be appropriate.
In a recent written question to Treasury Minister Elaine Millar, Deputy Max Andrews asked if such a break, or the exemption of stamp duty on “lower-value transactions”, had been considered to help stimulate activity in the housing market.
Deputy Millar responded: “Jersey’s housing market is continuing to recover following the impact of the pandemic and the increase in interest rates since September 2022. Transactions are increasing from the previous quarters and stamp-duty revenue is currently above where it was at this point in 2023.
“House prices are stabilising for most property types but are largely influenced by new developments. The Fiscal Policy Panel’s most recent assumptions echo this, forecasting a 50% increase in transactions and a 2% increase in house prices in 2025.”
She added: “All of this points to a market that is slowly recovering whilst in a delicate position. Stamp duty returned £39.5 million in 2023, and it would be unaffordable to forego that revenue in whole or in part for a policy that could drive up house prices in a recovering market.”
Statistics Jersey’s recently published House Price Index report documenting the third quarter of this year showed that the turnover of properties was 12% lower than the previous quarter but 19% higher than in the corresponding quarter of 2023.
