Diolch, Llywydd. I'm pleased to open the debate on the Land Transaction Tax (Temporary Variation of Rates and Bands for Residential Property Transactions) (Wales) Regulations 2020. This is the first time that we are voting on changes to LTT rates since they were first introduced and first set by the Senedd in January 2018. I am grateful for the Legislation, Justice and Constitution Committee's report and to the Finance Committee for giving me the opportunity to give evidence to them. 

The purpose of these regulations is to make a temporary variation to LTT rates and thresholds applicable to certain residential property transactions with an effective date on or after 27 July 2020 and before 1 April 2021. On 1 April, the tax rates will revert back to those in force before 27 July this year. Of course, I continue to keep the rates under review to ensure the taxes devolved to Wales are delivering the tax regime that we want for a fair and prosperous Wales. 

The regulations make a single change to the main residential rates. They remove the first band, so that tax starts to be paid on the consideration given for the property of more than £250,000, up from £180,000. Importantly, these changes, unlike in the other countries of the UK, are restricted to those paying the main residential rates only. There will be no tax reductions for investors in buy-to-let properties, furnished holiday lets or second homes. We therefore ensure that the benefits of this temporary variation are provided broadly to those purchasing homes in which to live. These changes mean that, from 27 July until 31 March next year, around 80 per cent of homebuyers in Wales will pay no tax, up from 60 per cent. And, for the 20 per cent of homebuyers who now pay tax, the amount payable is reduced by £2,450. 

I have also been able to provide £30 million to fund a substantial increase in the capital investment for the next phase of the homelessness response, as part of the phase 2 homelessness plan, with the aim of achieving our goal of ending homelessness in Wales. These changes should help our recovery by providing an economic stimulus to support the housing market and the broader economy in Wales by homebuyers spending money in the economy, local authorities investing to combat homelessness, and supporting jobs and businesses, thereby fostering confidence.

The temporary rates are a balanced response by this Government. They provide tax reductions to help stimulate the economy, retain our progressive tax principles and provide funding to help some of our most vulnerable citizens. I therefore ask for the Senedd's support to confirm these temporary changes. Diolch.