Politicians have overwhelmingly voted to reject proposals to increase stamp duty on second homes.

The States Assembly voted to reject Deputy Max Andrews’ proposition to increase Stamp Duty, Land Transaction Tax and Enveloped Property Transaction Tax for properties that are not main residences from 3% to 5% by 1 January 2026.

There were three votes for, 41 votes against, and one abstention.

In a report accompanying his proposition, Deputy Andrews said that the stamp duty surcharge “provides more opportunities for first-time buyers because it discourages investment in second homes”.

He explained that, if stamp duty remains at 3%, there is a “greater risk of the housing market becoming more distorted”.

“To avoid this outcome, the States Assembly need to increase the stamp duty surcharge to reduce the extent of investment in second homes,” he said.

“We must recognise that Jersey’s partial housing market failure is worse than the UK’s, partially due to being a low tax jurisdiction leading to higher net incomes and wealth accumulation for some of the population who invest in the housing market.”

Deputy Andrews added that he has an “ambition to increase homeownership”.

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Pictured: Politicians voted to reject a proposition lodged by Deputy Max Andrews.

He said: “As a politician, I want to see the development of new homes for working families. I also want to give working families more opportunities to access affordable housing.

“When I define affordable housing, I refer to the household’s ability to acquire and service its debts without impacting the financial wellbeing of the household throughout the tenure of the mortgage.

“I am not advocating that house prices reduce because negative equity could have significant implications.

“However, I do believe hardworking families should be given the opportunity to own their own home over that of someone who seeks to achieve an economic rent.”