Politicians reject plans for stamp duty holiday

States members have voted against a budget amendment to bring in a stamp duty holiday in 2025.

The amendment brought by deputy Philip Ozouf would have seen a stamp duty holiday in 2025 on properties worth up to £700,000

Seven states members voted for the proposals, 36 voted against and there was one abstention.

Housing Minister Deputy Sam Mézec said the amendment brought forward by Mr Ozouf “had no merits.”

Ozouf said his amendment was a “targeted, timely and temporary intervention” and would “get the housing market moving again because housing transactions are at a historic low".

"Families are unable to upsize and first-time buyers are struggling to enter the housing market," he said.

His amendment was criticised by ministers as if passed it would have led to a £10.5m income cut.

Treasury Minister, Deputy Elaine Millar said the amendment would lead to “a significant funding gap and would increase operating deficits".

She added: “The loss of income would be so significant that if approved the council of ministers would be forced to take alternative action to bolster our finances.”

Mézec said the amendment would see a "spike in housing transactions in the short term" but would not help bring down house prices.

He said: “It can benefit sellers rather than buyers, because it allows sellers to keep prices where they are rather than reduce them.”

Politicians also narrowly voted against a government amendment to reduce the stamp duty surcharge on second homes and rental properties by one percent.

The surcharge was originally introduced to “prioritise homeownership above investment purchases".

Ozouf brought an additional amendment to abolish the surcharge in order to help boost the rental market, but the council of ministers amended his plans to reduce the higher rate of stamp duty rather than abolishing it completely.

Politicians narrowly voted against the one percent reduction with 24 members voting against, and 23 voting in favour of it.