My Lords, I am grateful to noble Lords who have taken part in this debate.
The noble Lord, Lord Northbrook, asked me several questions. He started by asking whether this change would have the effect of increasing foreign ownership at the top end of the market. It is far too early to tell how it will affect the market more generally. A number of suggestions have been made but we must see how things turn out before we can draw any firm conclusions about that. The noble Lord asked why we had not adopted the same approach to non-residential property. The Government think that the market for non-residential property is very different from that for residential property. For example, the data show that the current non-residential SDLT structure has less of a distortive effect around the rate thresholds than the old residential
SDLT rules, non-residential properties also have a higher value on average and many have large leases and small premiums, which is rare for residential properties. Because of these differences, we do not think it follows that a reform to non-residential SDLT should accompany the reform that we are talking about today.
The noble Lord raised the Swiss system of dealing with under-occupied properties. I will, of course, happily pass that on to my colleagues in the Treasury. He suggested that we should insert more council tax bands at the top end. I thought for a moment that he was advocating Liberal Democrat policy, but then I discovered that he wanted to do that instead of the changes proposed in the Bill rather than in addition to them. We feel that, through the Bill, we are dealing with a system that has widely distorted the market over a long period and have replaced it with something which is more progressive and less distorting.
The noble Lord, Lord Tunnicliffe, pressed on the House the Labour Party’s proposal for a mansion tax and the need to build more houses. The election will include much debate on the mansion tax and I do not think I would serve a very useful purpose by entering into it this evening. On the noble Lord’s second point, while I agree, and the Government definitely agree, that we need to build more houses, I would point out
that the Government have taken significant steps to support housing supply, including introducing the new National Planning Policy Framework, investing £7.8 billion to deliver 335,000 new affordable homes between 2011 and 2018, which is the most ambitious affordable housing programme for 20 years and being done in very difficult economic times, and providing £3.6 billion to facilitate access to finance for SME builders. The Autumn Statement includes a raft of further measures which will substantially boost housebuilding.
I am extremely grateful to noble Lords who have spoken in favour of the principles of the Bill and therefore I ask that it be given a Second Reading.