A way to kick-start London’s housing market

sir – Philip Hammond’s Spring Statement is an opportunity to reverse a serious mistake by his predecessor as Chancellor.

George Osborne’s sharp increase in stamp duty on higher-value homes has resulted in a moribund housing market in our capital. In 2018, house prices in the capital fell for the first time since the financial crisis. Yet despite this, the Royal Institution of Chartered Surveyors recorded the lowest number of sales since its records began.

Not only are houses not being bought and sold, but house building across London also fell by 10 per cent in 2018, according to the National House Building Council. Aside from the damage to the housing market, the Government is receiving less money from stamp duty than before – a stark reminder that higher taxes are not the answer.

None the less, the cost of housing means that fewer families can afford homes in London and so are trapped in an increasingly expensive rental market. According to the Institute of Fiscal Studies, many people now spend more than 50 per cent of their income on rent alone. Stamp duty has become a tax on social mobility.

A stagnant market is not good for families, small firms or job seekers. It will take years to build the new homes Londoners require, but the market needs a kick-start and a significant reduction in stamp duty would immediately increase the supply and movement that is so badly needed.

A bold intervention from this Chancellor to reform the housing market would improve life in this great city. It would also be a welcome diversion from the Brexit debate. Victoria Borwick

Former Deputy Mayor of London and MP for Kensington

London SW1