Labour has pledged to put an extra tax on overseas nationals buying property in the UK.

It is part of the party’s wider tax plans and would charge foreign purchasers 2% on top of the standard stamp duty rates for non-UK residents purchasing residential property.

In the face of a growing housing crisis in the UK, Rachel Reeves, the finance policy chief of the Labour Party, proposed the stamp duty surcharge during her speech at the party’s conference in Liverpool yesterday.

According to Reeves, this measure is necessary to make it more affordable for UK residents to buy homes and to address the housing crisis, ensuring the property market is, in Labour’s view, fairer for first-time buyers, and address the issue of excessive second homes and short-term holiday lets.

The party says it would use the additional revenue generated from the surcharge to invest in building more affordable housing. These proposals are part of Labour’s wider housing policy, which also includes giving local communities more control over housebuilding and making renting more secure for tenants.

But some critics of the policy argue that it could deter foreign investment in the UK and have an adverse impact on the economy. The policy announcement comes amidst ongoing debates and concerns about the impact of overseas buyers on the UK housing market, particularly in London.

But the move to raise the stamp duty surcharge on overseas buyers is a significant policy announcement from the UK Labour Party. It highlights their focus on addressing housing affordability and the role of foreign investment in the housing market.

Labour leader Sir Keir Starmer has already promised that Labour would build 1.5 million homes within five years of taking office.

Part of the hsi party’s plans is to tax private developers to fund more social housing and look to build new towns along railway lines as part of its plan to tackle the housing crisis.

Other measures under consideration include giving local authorities greater powers for compulsory land purchases and building on some green belt areas.

Labour’s plans to end ‘feudal’ leasehold system warmly welcomed