Wide-ranging benefits
Spencer emphasises the need to maintain the zero-stamp duty rate for first-time buyers on homes up to £425,000, arguing that this would be a valuable step in helping them onto the property ladder, particularly in more expensive areas.
He also highlights the benefits of encouraging right-sizing among those over 55. This would involve incentivising them to move to smaller, potentially more energy-efficient properties, freeing up larger family homes for younger families. Spencer believes that reducing the high moving costs associated with SDLT could make downsizing more appealing and benefit the entire housing market.
Key asks for the housing sector
Propertymark has proposed several other measures aimed at stimulating the property market, including
- Reversing Section 24 of the Finance Act. This would allow landlords to claim 100% of their mortgage interest when filing tax returns, potentially increasing the supply of rental properties and bringing down rents.
- Supporting landlords and homeowners to achieve net zero. This could involve providing interest-free loans, grants, and extended VAT exemptions for commercial buildings to make energy efficiency improvements.
Planning for the long-term
Carefully planned housing policy is crucial for a successful economy, especially as the UK population, is projected to reach 70 million within the next five years. The UK Government must produce a strategy that ensures a sustainable supply of homes in areas with high demand, prioritising the use of brownfield land and developing robust infrastructure to support new developments.
Reeves should carefully consider how the taxation structure can encourage long-term investment in housing and allow flexibility for people to move to homes that best suit their needs.
With the Budget announcement approaching, keeping the zero-stamp duty rate for first-time buyers on homes up to £425,000 would be a valuable step toward helping them onto the property ladder, especially in the more pricey locations.
At the same time, encouraging 'right-sizing' for those over 55 could free up much-needed family-sized homes, providing more options for younger families. For those looking to move to smaller, easier-to-maintain properties with lower heating costs, reducing high moving costs could make this decision far more achievable.
Thoughtful support for both first-time buyers and older homeowners would benefit the entire housing market.
