As the newly elected Labour government takes form, the industry is focusing on the potential challenges and opportunities related to Labour’s plans for stamp duty reform. Various experts and professionals in the housing and mortgage sector have shared their insights on what they believe the new government should prioritize in terms of stamp duty changes and how these changes could impact the housing market.
Tim Bannister, a property expert from Rightmove, suggests that making the existing stamp duty thresholds permanent for first-time buyers would be an appropriate initial step. He also emphasises the importance of innovative solutions to help first-time buyers with their deposit and their ability to borrow from lenders in the long term.
Simon Webb, managing director of capital markets at Livemore, underscores the need for affordability as Labour begins its tenure. He highlights the fact that Labour’s manifesto focuses on maintaining current stamp duty exemptions for first-time buyers, but does not extend this exemption to other buyers. This, he argues, could result in older buyers being trapped in larger houses they cannot downsize from, while younger buyers are unable to enter the market. Webb stresses the importance of Labour consulting the industry for guidance on addressing the housing crisis.
Tomer Aboody, director of MT Finance, asserts that stamp duty is the most obvious starting point for the new Labour administration. Aboody advocates for reform and reduction of the current system, and urges Labour to consider removing stamp duty for those who are downsizing, which could incentivise homeowners to opt for smaller properties and free up larger family homes, ultimately stimulating the property market.
Sam Lindsay, a mortgage adviser at My Mortgage Angel, echoes the need for market stimulation and urges the new government to implement changes that facilitate a faster pace for the housing market. Lindsay emphasises the importance of changes to stamp duty, as well as greater initiatives for both buyers and sellers, and reinstating support for first-time buyers.
Elizabeth Bradley, global practice group leader of tax at BCLP, draws attention to the impact of Labour’s proposed increase to the stamp duty charge for non-UK residents acquiring UK residential properties. Bradley explains that Labour plans to increase the surcharge by 1% to 3% in order to fund more planning officers and promote home building. She also notes the potential implications for the build-to-rent sector and suggests that they engage with the new government to reinstate multiple dwellings relief.
In conclusion, the industry is looking to the new Labour government to address the pressing issue of stamp duty reform in a manner that supports both buyers and sellers, encourages market stimulation, and provides relief for overseas property investors. The coming months will reveal how the new government plans to navigate these challenges and opportunities, and the industry will undoubtedly play a crucial role in shaping the direction of housing policy.