Thank you, Chair, and can I thank Taylor Reynish for submitting this? Whilst there are 268 signatures, I'm sure there are thousands of people out there that would agree with the sentiment, certainly first-time buyers, because we all know how hard it is for first-time buyers at the moment to get onto the property ladder. I think it's one of the fundamental things we all wish to see: our children to have a home of their own of some sort. If they want to buy, to be able to buy one, or if they want to rent, to be able to rent one. Perhaps with a change in Government over the weekend, perhaps Welsh Government policy might align—we don't know, as we move forward. But it's a fair challenge to make.
The Cabinet Secretary did write back and gave her rationale of why the land transaction tax is where it is, and we recognise that it has been increased from a threshold of—. Properties under £180,000 don't pay it, and that was lifted to £225,000 in 2020. Obviously, that's still quite a significant shortfall, in the petitioner's view, from what's on offer for first-time buyers in England, where you can buy a property up to £425,000 before paying stamp duty, which is obviously the equivalent in England. So, some fair challenges have been put down and some fair rebuttals from the Government. However, the petitioner does go on, and responded to the Cabinet Secretary's response to the petition, and he notes that, despite 60 per cent of transactions are free, many first-time buyers are still priced out of the market, especially in higher priced areas. And that's a really good point, because whilst we know what the average price is across Wales, it can vary massively. If we want to create cohesive communities and enable people to stay within their communities, you know, clearly some younger people will be disadvantaged and maybe even forced out to other areas where they can afford to live, and that undermines the fabric of many communities, so I can understand that.
The petitioner raised some specific additional questions, which are highlighted in our papers, 1 through to 5, and I'll briefly just touch on those. So, the first one was regional disparity: how does the Welsh Government plan to support first-time buyers in regions where property prices exceed £225,000? That's a good point. Challenges in expensive areas: why should those growing up in more expensive areas be penalised by a generalised tax scheme? Such one-time help would enable people to stay in their communities—quite important. Long-term strategy: is there a strategy, he asks, to periodically review and adjust the land transaction tax thresholds to match market conditions? Well, I think, in fairness to the Cabinet Secretary, that has been recognised previously, but will that continue? Impact analysis: has the impact of the current land transaction tax structure on first-time buyers been compared to those in England and Northern Ireland?? And then, finally, a point about percentage of first-time buyers: what exact percentage of transactions under the £225,000 threshold are first-time buyers? We've mentioned that 60 per cent are first-time buyers, but knowing the exact figures would help quantify the impact, the petitioner suggests. So, Chair and colleagues, I think it'd be fair, even in the light of the information given by the Cabinet Secretary, that we agree to write back to the Cabinet Secretary, to seek her responses to the additional questions that have been raised by the petitioner.