A well-calibrated LTT can support a healthy, active, and stable property market across Wales, stimulate home buying and selling, encourage responsible landlord investment, and generate revenue for housing and local services.
Introducing an annual finance bill would give a predictable timetable for tax decisions and improve clarity for buyers, sellers and investors. We also propose a formal stakeholder forum (with representative bodies such as Propertymark) to inform design and monitor real‑world effects of rate changes, reliefs or surcharges.
Learn from other places, but adapt for Wales
International and devolved examples are helpful in shape LTT policy, provided measures are tailored to the unique market in Wales. We back progressive structures with targeted reliefs and practical online tools, such as a First‑time Buyer Decision Tool to help people understand costs and support options, and measures for last‑time buyers to remove barriers to downsizing and free up family homes.
Conversely, high surcharges on additional properties (as seen with Scotland’s Additional Dwelling Supplement) can reduce activity and landlord investment, hurting liquidity and rental supply. Evidence cited in our submission shows investment purchases have fallen sharply under that model.
Retain secondary legislation powers with better consultation
Welsh Ministers should retain existing secondary legislation powers in the Welsh Tax Acts to respond at pace to market changes and technical issues. However, any changes should follow meaningful consultation with property agents, landlords and other professionals, and should be stress‑tested for market impacts before implementation.
We do not support removing all (or most) of these powers: doing so would slow practical updates and limit “made‑in‑Wales” solutions that reflect the distinct housing context.
What this means for agents and the market
If adopted, an annual finance bill would speed up technical fixes and encourage transactions and investment by making LTT simpler and more proportionate, particularly for first‑time buyers, downsizers and responsible landlords. That supports a healthier sales pipeline and a more resilient Private Rented Sector across Wales.
We will keep members updated as the consultation progresses. In the meantime, if you have evidence on how LTT or related measures are affecting transactions or rental supply in Wales, please share it with our Policy and Campaigns team by emailing [email protected].
