CUTS in Stamp Duty announced today will “drive up prices in an already overheated housing market” says the main opposition leader on City of York Council.

Cllr Claire Douglas attacked the announcement from Chancellor Kwasi Kwarteng that the level at which housebuyers pay Stamp Duty tax is to be doubled to £250,000.

No stamp duty will be paid on the first £250,000 of a property, while for first-time buyers the threshold will be increased from £300,000 to £425,000.

The measures were announced in the mini-budget this morning, which also includes abolishing the cap on bankers’ bonuses, and scrapping the top rate of income tax for the highest earners.

Mr Kwarteng also said the government would increase the value of the property on which first-time buyers can claim relief, from £500,000 to £625,000.

The Chancellor said this will take more than 200,000 buyers out of paying stamp duty all together.

“This is a permanent cut to Stamp Duty, effective today,” he said.

“Home ownership is the most common route for people to own an asset, giving them a stake in the success of our economy and society,” he said.

The move has been questioned by experts, who have suggested it may drive up house prices, cancelling out potential savings.

After the announcement, Cllr Douglas warned: “Much like the recent stamp duty holiday, the Tory Chancellor’s decisions today on stamp duty will drive up prices in an already overheated housing market, more than cancelling out any saving the cut will achieve.

“This will push affordability even further out of reach for those aspiring to buy their own home.  It’s critical that key workers and other first time buyers have hope that they can save towards buying a home, but today’s measures push that dream as far away as it’s ever been for many.”

She added: ““In contrast, his measures today unfortunately offer far more to second home investors such as those snapping up family homes to operate short term holiday lets in a city like York”.        

Earlier this month, the press reported house prices in York have gone up by an average of over £4,000 in the month of June, according to figures from the Land Registry.

The latest data from the government department reveals that in June 2022 average house prices in York reached £315,202.

This was up from £310,482 in May, representing over a 1.5 per cent increase. In the last 12 months it has risen by 10.0 per cent.