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Wed June 16 2021

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Redrow calls for stamp duty reform

10 Feb Housing developer Redrow has called for stamp duty reform as it posted record first-half revenue and legal completions.

Chief executive Matthew Pratt
Chief executive Matthew Pratt

Redrow’s half-year results for the six months to 27th December 2020 show pre-tax profit up 11% to £1784m (2019/20 H1: £157m) and revenue up 20% £1,041m (2019/20 H1: £870m).

Legal completions were also up 20% to 3,065 units.

Sales have remained strong moving into the second half of the financial year, the company said, with an order book of £1.3bn (2020: £1.2bn) of which 72% is contracted. “We are now over 95% forward sold for the current financial year,” chief executive Matthew Pratt said.

Redrow's chief took the opportunity to add his voice to the growing calls for stamp duty reform.

"We welcomed the chancellor's introduction of the stamp duty holiday, which is expected to end on 31st March 2021. It is an important initiative, which has led to a positive economic ripple effect beyond the new homes market," he said. "The success of the holiday illustrates that high levels of Stamp Duty deter buyers and we continue to urge government to undertake a reform of the tax to make homes more affordable in the longer term."

Matthew Pratt continued: "In its current form, stamp duty is an arbitrary tax, which inhibits mobility and reduces the liquidity of the housing market. Ultimately, it penalises those looking to relocate for work or wanting to downsize as part of retirement plans. Stamp duty needs to be reformed to help the housing market work more effectively and to stimulate more transactions, which will in itself drive tax generation throughout the home buying supply chain of estate agents, solicitors, removals, furnishings etc."

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