The MS for the Vale of Clwyd has called for the abolition of Land Transaction Tax (LTT)
Gareth Davies MS has urged the Welsh Government to abolish LTT, also known as stamp duty, on main homes during a Welsh Conservative-led debate in the Senedd.
He argued that the tax is "punishing aspiration" and limiting housing mobility, contributing to what he described as a "broken" housing market.
The MS said the tax affects a wide range of people, including families trying to move, first-time buyers, and older residents looking to downsize.
Mr Davies referenced a decline in home ownership among younger adults, pointing to figures showing just 39 per cent of 25 to 34-year-olds owned their home in 2023, compared with 67 per cent in 1991.
He argued that this decline reflects deeper issues around housing supply, affordability, and taxation policy.
Mr Davies said: "Home ownership is slipping further out of reach for too many people in Wales, with many young people losing out on the opportunity to have a stake in society which was more obtainable for older generations than their own.
"Land Transaction Tax makes it harder to move, harder to downsize, and harder for young people to get on the property ladder, punishing aspiration and affecting ordinary working people.
"If the Welsh Government is serious about fixing the housing crisis and restoring home ownership as a realistic aspiration, it should scrap Land Transaction Tax on main homes as a step towards fixing our broken housing market."
He argued that the tax raises around £147 million annually from primary residences, a relatively small portion of the Welsh Government’s overall budget.
Mr Davies also referenced criticism of stamp duty from independent bodies such as the Institute for Fiscal Studies and Treasury Committee in Westminster which have described the tax as economically damaging and harmful to labour mobility.
He said that the proposal would apply only to main homes, not second homes, and was aimed at supporting ordinary buyers, with the average cost of a Welsh home being over the threshold for Land Transaction Tax.
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