An interesting request was made to Chancellor Rishi Sunak – to consider reforming the stamp duty with revised thresholds to reflect local markets.
The call came from professional real estate agency Propertymark which lobbied Sunak ahead of the budget and spending review slated for later this month.
Propertymark says the current system has been in place since 2014 and is ripe for change.
The organization told Sunak: “A range of innovation opportunities could be explored, such as how the tax could be levied to minimize restriction on transactions and facilitate more dynamic movement in and through the market, encouraging time buyer’s relief), helping more people realize their aspirations of owning their own homes, maximizing the use of the existing housing supply, and contributing to retrofit programs and net zero by putting more empty homes back into service and supporting energy efficiency improvements.
Propertymark’s submission dwells on downsizing for some time. “The current inefficiencies that create a barrier to downsizing are reducing the demand for specially designed housing for the elderly. In the UK, only 2% of the country’s housing stock has been designed with retirees in mind, thus perpetuating the lack of movement and raising prices due to a lack of options for those who would otherwise be inclined to relocate . “
He tells the Chancellor that launching a review could foster movement in and through the housing market, helping to free up homes for first-time buyers, second-steps and those looking to adjust (to the increase or decrease).
Propertymark says that the stamp duty – more specifically, a reduction or drastic change in it – can play a vital role in the economy at large.
“It should be noted that even a 1% reduction in the SDLT has been found to increase housing market activity and the implications of this by 20% – especially in attempts to correct market inefficiencies, to support l home ownership and encourage investment in the private sector. leased area – should be explored as a priority, ”says the submission.
Much of the rest of the document Propertymark sent to the Treasury focuses on reforms to help landlords, preventing a further exodus from the rental market.
Specifically, these suggestions are:
– develop a private rental support and support program to help prevent debt, poverty and homelessness, and to help improve access to affordable housing for households displaced by Covid-19 ;
– provide adequate resources and reform the existing judicial system to cope with the volume of possession hearings following the suspension of evictions and the extension of notice periods during the pandemic;
– and invest in supporting homeowners to improve their energy efficiency by reintroducing an improved and improved green house subsidy coupon program and ensuring that policies extend beyond a one-size-fits-all approach.