One of Britain’s largest housebuilders is pressing the government to cut stamp duty on newly built homes, arguing that lower taxes could revive housing demand, accelerate construction and ultimately generate billions of pounds for the Treasury.
Berkeley Says Tax Cuts Could Unlock Billions
Berkeley Group has urged the government to reduce taxes on purchases of new-build properties as pressure mounts across Britain’s housing sector.
According to City AM, the London-listed developer used its Budget submission to warn that the housing market risks “sliding over an economic cliff edge” unless policymakers move quickly to stimulate transactions.
Berkeley’s proposal focuses in part on the 5% stamp duty surcharge applied to property investors. The company argues that reducing the surcharge for investors buying newly built rental homes could lift sales by around 30%.
Berkeley estimates that the additional economic activity generated by such a move could deliver a £4.2 billion windfall for the Exchequer.
The company says the current tax burden has weakened investor appetite at a time when developers need buyers to support new projects, particularly in urban areas where construction costs and financing pressures can make developments harder to launch.
Cut stamp duty to reap £4bn windfall, Berkeley urges Healey https://t.co/716HLPyGR6
— City A.M. (@CityAM) October 6, 2026
Perrins Calls Stamp Duty the Fastest Lever
Rob Perrins, executive chairman of Berkeley, placed stamp duty reform at the center of the group’s appeal to the Treasury.
“Our position has always been that a stamp duty reduction on new-builds – especially around the investor surcharge, first-time buyers and downsizers – is the best and quickest lever,” Perrins said in Berkeley’s Budget submission.
“This is still needed alongside Your First Home to restart homebuilding in urban areas.”
Berkeley has also proposed capping stamp duty at 1% for first-time buyers and downsizers, widening the scope of its recommended intervention beyond investors.
Other major names in Britain’s housing industry have also pushed for changes to property transaction taxes. Bellway, Barratt Redrow and property portal Rightmove have previously called for action on stamp duty as developers confront weaker buyer demand.
The pressure has intensified as higher mortgage borrowing costs have hurt affordability and confidence among would-be purchasers.
New-home Sales Have Fallen Sharply
Berkeley’s argument rests on a marked deterioration in sales across the new-build market.
The developer urged the Chancellor to address a “significant slowdown in the rate of new housing sales,” which have slowed by 56% since 2022, to 8,840 last year.
For housebuilders, lower sales rates can quickly affect decisions about when to start new developments. Developers generally need confidence that completed properties can be sold at sufficient prices before committing capital to large projects.
That dynamic creates a direct link between demand and future housing supply. Berkeley argues that stimulating transactions could therefore encourage builders to move forward with schemes that might otherwise be delayed.
The company tied its proposal to the government’s stated ambition to deliver 1.5 million homes during the current Parliament, arguing that relatively few policy changes could produce an immediate increase in activity without requiring substantial direct public spending.
“If the government wants to increase housing supply as measured against its high-profile commitment to deliver 1.5m homes this Parliament, there are few policy measures available with the potential to deliver such an immediate impact, whilst sticking to a tight fiscal envelope,” Berkeley said.
Your First Home adds Another Demand-side Measure
Berkeley’s intervention comes as the government looks for other ways to help buyers enter the market.
A new program called Your First Home has been announced to provide equity loans to first-time buyers, drawing comparisons with the former Help to Buy program introduced under George Osborne.
Help to Buy operated between 2013 and 2022 and used government-backed equity loans to make newly built homes more accessible to buyers with smaller deposits.
The announcement of Your First Home lifted shares in several major housebuilders, with analysts viewing the measure as a potential catalyst for demand.
Berkeley, though, believes the initiative will not be sufficient on its own.
Perrins told the Treasury that Your First Home would not resolve what he described as an “acute [housing] crisis, particularly in London.”
That concern explains why Berkeley is pushing for a broader package centered on transaction taxes rather than relying solely on buyer financing programs.
Housebuilders Seek a Faster Recovery in Demand
The debate over stamp duty reflects a wider challenge facing the British housing market: developers need stronger sales before they can confidently increase construction.
Mortgage affordability, transaction taxes and investor returns all influence how quickly homes sell. When demand weakens, builders can slow the release of new properties or postpone planned developments, making government housing targets harder to reach.
Berkeley’s proposal attempts to address that problem by reducing the cost of purchasing newly built property for three groups it considers especially important: investors, first-time buyers and downsizers.
The company is presenting the tax cut not simply as support for developers, but as a measure that it says could pay for itself through higher transaction volumes and wider economic activity.
Its central claim is unusually specific: reducing the investor surcharge on new-build homes could drive 30% sales growth and generate an estimated £4.2 billion for the Treasury, while recorded new-home sales have already fallen 56% from 2022 levels to 8,840 last year.
