10 July 2020

Stamp Duty Holiday Helps the Wider Construction Industry

Many people have criticised the Chancellor's stamp duty holiday for including second home owners and investors and while this appears an oversight on the part of the Government, those critics should think more deeply about this decision.

Richard Beresford, chief executive of the National Federation of Builders (NFB), said: “The 3% surcharge on those who own second homes remains, meaning the Government will still receive much needed revenues.  The Chancellor’s decision also invites investment in the wider industry, which will save thousands of ancillary businesses and hundreds of thousands of jobs.”

The NFB has always talked about the wider construction industry because if they shut down or struggle, so does industry. This is seen on a daily basis in the underfunded planning system but was most acutely felt during the Covid-19 lockdown, when builder’s merchants shut down and industry ground to a half.

The Chancellor’s decision to allow everyone to benefit from a stamp duty holiday will not just support homeowners, buyers and house builders but it will ensure all those in housebuilding will win more work and be better prepared to weather the upcoming recession.

Rico Wojtulewicz, head of housing and planning at the House Builders Association (HBA), said: “Housebuilders will directly benefit from this decision but so will their supply chain; from solicitors, surveyors and estate agents, to kitchen fitters, plumbers and curtain makers. Hundreds of occupations will win more work because of the stamp duty holiday and while on the surface it may seem like an unequal giveaway, the wider benefit to our industry will be huge.”