Could a cut in stamp duty solve the housing crisis?
Regular readers of Advantage Structural Warranty’s blogs will know that we’ve looked in depth at the potential causes of and solutions to the UK housing crisis in recent months. This week we look at whether a simple cut in stamp duty could be the answer.
As reported by Development Finance Today, new research from Audley Group has revealed that 33% of people in the UK believed a cut in stamp duty and more initiatives to assist first-time buyers are key factors in solving the housing shortage.
Perhaps unsurprisingly, participants aged 18-34 were more inclined to back policies which helped first-time buyers.
Meanwhile, 38% of those over 55 considered that more support for older homeowners who wanted to downsize their property was the most efficient route to unlock the housing crisis.
Opinions were also split between regions, with the North prioritising first-time buyers, with the South being more inclined towards stamp duty reduction and support for older homeowners.
Nick Sanderson, CEO at Audley Group, commented: “Reforms to stamp duty and incentives to support downsizing are not ground-breaking policies, but they have the potential to revolutionise the UK housing market.
“Yes, we must build more, but crucially these must be high quality properties which can adapt to people’s evolving needs.”
However, a cut to stamp duty is not popular with everyone. Earlier this month, property specialist David Alexander warned that a high stamp duty threshold could “collapse” the market in Scotland.
As reported by Insider, David Alexander, joint managing director of apropos by DJ Alexander, expressed optimism about growth north of the border. He said the strong backing for Boris Johnson’s Brexit deal in Parliament last month had “lifted some of that uncertainty which had previously clouded the marketplace”.
But he cautioned that a tax giveway by Chancellor Sajid Javid to buyers south of the border would heavily penalise potential buyers in Scotland.
We’ll be back soon with more news affecting structual warranty and the construction industry. In the meantime, thank you for reading!
New research from Audley Group has revealed that 33% of people in the UK believed a cut in stamp duty and more initiatives to assist first-time buyers are key factors in solving the housing shortage.
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