Housebuilder Redrow is calling on the Welsh Government to follow England where a stamp duty holiday on  houses less than £500,000 has been introduced.

Chancellor Rishi Sunak  announced a scrapping of stamp duty for such properties in England in his  summer statement last week in a move designed to stimulate both the housing market and the wider economy amid the Covid-19 pandemic.

As land transaction tax (LTT and previously known as stamp duty) is devolved it is a matter for the Welsh Government to decide whether to follow the England position.

The Welsh Government, which received a consequential for Ms Sunak's statement of around £600m, is expected to confirm where it will spend the money this week.

Stamp duty was replaced in Wales by LTT in 2018 following the devolution of certain tax raising powers.

The current regulation in Wales means that no tax is paid on the first £180,000 of a property, which increases to 3.5% up to £250,000 and 5% up to £400,000.

Finance Minister Rebecca Evans has not ruled out matching the stamp duty holiday, stating on the day of the Chancellor’s announcement that she would consider the effects of the measure on the Welsh market over the "next day or so."

The issue for the Welsh Government it that it has a higher percentage of homes sold for less than £500,000 than England and that the consequential doesn't take into the account that fact.

Headquartered in Ewloe, Flintshire, Redrow currently has ten developments in Wales and in 2019 made contributions of £314m to local communities across the England and Wales.

Redrow chief executive, Matthew Pratt, said:“The Welsh Government has an opportunity to further stimulate the housing market as well as the wider economy across Wales.

