Chancellor Rachel Reeves is facing calls to introduce a major stamp duty overhaul in Wednesday's Autumn Budget, a move that could see homebuyers pay no tax on new properties for a limited period.
Key Proposals for the Housing Market
Financial services provider Aldermore has put forward two significant policy proposals aimed at revitalising the UK housing market. The firm is urging ministers to implement an 18-month suspension of stamp duty on newly built properties valued below £500,000.
This 'stamp duty holiday' would provide immediate financial relief to purchasers, particularly first-time buyers struggling to get onto the property ladder. The second proposal involves reintroducing the Help to Build programme, where the Government would provide a 20% equity stake in new properties when buyers contribute just a 5% deposit.
Addressing the Housing Shortfall
Danielle Soto, Managing Director for Savings and Business Finance at Aldermore, highlighted the pressing need for such measures. 'While the Government has striven to reach its target of building 300,000 homes a year,' she stated, 'the data on completed homes to date demonstrates this ambition is currently out of reach.'
She elaborated on the rationale behind the stamp duty proposal: 'That's why we're calling for an 18-month stamp duty holiday for buyers of new homes under £500,000 to stimulate sales, support first-time buyers and help smaller developers maintain cash flow.'
Public Backing for Innovative Support
Aldermore's research, conducted through their First Time Buyer Index which surveyed 2,000 potential purchasers, reveals strong public sentiment for government intervention. The data shows that two-thirds of respondents believe both ministers and the mortgage sector should develop more innovative support mechanisms.
Furthermore, the research found that nearly 70% of potential buyers support bringing back the Help to Buy initiative, indicating a clear appetite for schemes that ease the path to homeownership.
As Chancellor Rachel Reeves prepares to deliver her second Labour Party government budget on Wednesday, November 26, these proposals represent a potential lifeline for a housing market in need of stimulation and for aspiring homeowners facing significant financial barriers.
