Stamp duty changes high on agenda for many commentators

The housing industry is looking to new Prime Minister Andy Burnham and his Chancellor John Healey for economic clarity, with interest rates and property taxes high on the agenda.

Nathan Emerson, CEO of Propertymark, said: “Over the coming months, there will be sizeable challenges across the wider economy to overcome. Although the year started with quiet confidence in the housing market, there have been sizeable difficulties to contend with in terms of global unease.

“While we have seen inflation progressively start to approach its target and base rates hold steady, there is a much wider picture for John Healey to consider. Housing remains fundamental to economic growth, with issues such as Stamp Duty for those buying a property in England or Northern Ireland, as well as taxation frameworks affecting many landlords in the private rented sector, all in need of review and potential restructuring.”

Stamp duty reform

The reform of stamp duty is high on the list for many commentators. Nick Leeming, chairman of Jackson-Stops, said: “Our latest research suggests that removing stamp duty costs could bring more than 300,000 owner-occupied homes onto the market across England within less than a year. At the same time, 42% of those whose moving plans have been delayed cited economic uncertainty as a reason. 

In April, analysis by Rightmove showed that in the 12 months since the end of temporary stamp duty relief measures, first-time buyers in England had paid an average £4,618 extra in stamp duty, equating to around £307 million in total. It also showed the regional difference.

Colleen Babcock, property expert at Rightmove, said its research had also shown that the majority of first-time buyer stamp duty comes from a small number of higher‑priced regions. “A more regionally-aligned approach to stamp duty could better support first-time buyers where affordability pressures are greatest, while also helping to encourage more movement across the housing ladder.”

Rightmove is also calling for the removal of stamp duty for first-time buyers across both new-build and resale properties. 

Many have welcomed Burnham’s appointment, but the response to the return of Angela Rayner as Housing Secretary, is more mixed. Rohit Kohli, director at The Mortgage Stop, said: “Rayner resigned over a stamp duty error on an £800,000 property. Now she’s housing secretary. If a mortgage broker, solicitor – or frankly any ordinary person – made the same mistake, the consequences would look very different.”