Conservatives plan 3% stamp duty hike for foreign buyers

The Party plans to charge foreign buyers an extra 3% in stamp duty if it wins the General Election, claiming it will help more people onto the property ladder.

The government had previously planned to charge an extra 1% to foreign buyers.

In its manifesto, published yesterday, Labour announced plans to give local people 'first dibs' on new homes.

Chief Secretary to the Treasury Rishi Sunak said: "Evidence shows that by adding significant amounts of demand to limited housing supply, purchases by non-residents inflate house prices.

"Britain will always be open to people coming to live, work, and build a life in this great country. The steps we are taking will ensure that more people have the opportunity of a great place to live and build a family."

However Vadim Toader, founder and CEO of Proportunity, said that "foreign buyers aren't to blame for the UK's housing mess". Toader believes "slapping extra stamp duty on their transactions risks hitting the London market, especially at a time when we should be opening up to overseas investment".