Chancellor Rachel Reeves will deliver her first Spring Statement today and there are hopes for much-needed housing market support.
Reeves is facing the pressure of low economic growth and high inflation and while no major tax changes are expected, her policy plans could hit the market.
Timothy Douglas, head of policy and campaigns at Propertymark, said: “With housing playing a key part in the UK Government’s plan for change, the Spring Statement must ensure government policy protects the delivery of more social and affordable housing and local authorities have the resources they need across planning, enforcement and infrastructure.
“Policymakers must also fully understand the need to reform housing benefits so they reflect real rental costs, and the UK Government must continue to target resources to tackle the cladding crisis and improve building safety to help boost economic growth.”
With Stamp Duty set to increase from 31 March, reverting to pre-September 2022 thresholds, Jonathan Handford, interim managing director of Fine & Country is urging the Government to reconsider.
He said: “As one of the few tools available to stimulate the property market, he believes Stamp Duty should be reduced rather than increased.
“At a time when borrowing costs remain high, the additional burden of Stamp Duty acts as a deterrent, discouraging homeowners from moving.
“For many would-be movers, particularly families looking to upsize or older homeowners considering downsizing – the upfront tax cost is simply prohibitive.
“Reducing Stamp Duty would not only make it more affordable to move, but the resultant increase in transaction volume would likely offset any shortfall in per-transaction revenue for the Treasury. More importantly, it would deliver a significant boost to the broader economy.”
He is also calling for the Government to reintroduce a modernised Help to Buy Scheme.
