Treasury urged to consider stamp duty cut for downsizers

Estate agents haart are calling for the Treasury to consider extending the first-time buyer stamp duty cut to downsizers so they are encouraged to free up larger family homes.

Related topics:  Finance News
Rozi Jones
15th June 2018
house lock fixed rate mortgage
"The Treasury should consider extending the first-time buyer stamp duty cut to downsizers, so they are encouraged to free up larger family homes."

Its data shows that prices for detached and semi-detached properties have increased by 5.3% and 4.6% on the year respectively, and says the government "must respond to the plight of the second stepper and ensure it is building enough family sized-homes".

Demand remains high, with the number of registered buyers at a two-year high and the number of interested first-time buyers at its highest since the Brexit vote with a substantial 34.9% annual rise.

The average purchase price for first-time buyers has fallen by 3.6% on the month and by 4.1% on the year. This comes as the number of first-time buyers registering onto the market has increased by 2.1% on the month and by a substantial 34.9% on the year.

Paul Smith, CEO of haart, commented: “The UK property market remained robust in May, as transactions continued to level and house prices remained steady on the month. We continued to see extremely healthy numbers registering to buy, and we now have the highest number of buyers on our books since May 2016, and the highest number of first-time buyers since August 2016, with no signs of demand slowing. The property market relies heavily on confidence, and the numbers we are seeing registering to buy are extremely positive for the market as a whole.

“The demand for properties to rent has grown significantly - up 40% on the year. Portfolio landlords should consider the long-term returns of their properties before rushing to sell up. Despite the government’s changes to mortgage interest relief, the reality is that tenant demand continues to vastly outstrip rental supply, and the yields to be gained are still far more favourable and a safer bet than the majority of other investment opportunities available.

“Prices for detached and semi-detached properties have increased by 5.3% and 4.6% on the year respectively. The government must respond to the plight of the second stepper and ensure it is building enough family sized-homes, and not just flats, to give families room to grow. However for a quicker fix, the Treasury should consider extending the first-time buyer stamp duty cut to downsizers, so they are encouraged to free up larger family homes.”

More like this
Latest from Property Reporter
Latest from Protection Reporter
CLOSE
Subscribe
to our newsletter

Join a community of over 30,000 intermediaries and keep up-to-date with industry news and upcoming events via our newsletter.