States Members Decline Stamp Duty Holiday Proposal

Members of the States assembly have rejected a proposed budget amendment that aimed to introduce a stamp duty holiday in the year 2025. This amendment, put forward by Deputy Philip Ozouf, sought to implement a stamp duty holiday during 2025 for properties valued at up to £700,000. The proposals received seven votes in favour, with 36 members voting against them, and one abstention recorded. Housing Minister Deputy Sam Mézec stated that the amendment presented by Mr Ozouf “had no merits.” Deputy Ozouf described his amendment as a “targeted, timely and temporary intervention” that would “get the housing market moving again because housing transactions are at a historic low”. He further commented, “Families are unable to upsize and first-time buyers are struggling to enter the housing market.” Ministers voiced criticism of his amendment, noting that its approval would have resulted in a £10.5 million reduction in income. Treasury Minister, Deputy Elaine Millar, indicated that the amendment would create “a significant funding gap and would increase operating deficits”. She also stated: “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.” Deputy Mézec contended that while the amendment might cause a “spike in housing transactions in the short term,” it would not contribute to lowering house prices. He elaborated: “It can benefit sellers rather than buyers, because it allows sellers to keep prices where they are rather than reduce them.” Furthermore, politicians narrowly rejected a government-proposed amendment aimed at decreasing the stamp duty surcharge on second homes and rental properties by one percent. This surcharge was initially implemented with the objective to “prioritise homeownership above investment purchases”. Deputy Ozouf had presented a separate amendment proposing the complete abolition of the surcharge to stimulate the rental market; however, the council of ministers modified his proposal to instead reduce the higher rate of stamp duty, rather than eliminating it entirely. The one percent reduction was narrowly defeated by politicians, with 24 members casting votes against it and 23 voting in favour.