Labour’s plans on stamp duty are seen by the industry as a key area as the new government takes shape.
Rightmove property expert Tim Bannister believes that making the existing stamp duty thresholds for first-time buyers permanent would be a start. “And then there is an opportunity to look at innovative solutions to help starters with both their deposit and being able to borrow sufficiently from a lender in the longer term.”
Simon Webb, director of capital markets at Livemore, says that with Labor sticking to the rules, affordability will have to be the new key word.
“Labour’s manifesto prioritized maintaining the current stamp duty exemptions for first-time buyers, but made no mention of extending this exemption to other buyers. Older buyers remain trapped in large homes they can’t downsize from, and younger buyers are left out. Regardless of how the new government plans to tackle the housing crisis, it is crucial that they listen to the sector for advice first.”
MT Finance director Tomer Aboody insists that stamp duty is the most obvious starting point for the new Labor government. “We have long advocated reform and downsizing of the current system. While the Conservatives promised to permanently raise the threshold for first-time buyers to £425,000 if they win the election, I would like to see Labor go further. Abolishing stamp duty for those downsizing would give homeowners an incentive to opt for smaller properties, while freeing up larger family homes. It could also help stimulate the real estate market.”
My Mortgage Angel mortgage advisor Sam Lindsay agrees with the need for stimulus. “Time will tell us a lot, but the reality is that the housing market urgently needs a boost. The new government needs to make some changes to get the market going again, and it needs to make these changes sooner rather than later. Changes to stamp duty would be welcome, bigger initiatives for both buyers and sellers and offering a helping hand to first-time buyers would be a great place to start.”
BCLP Global Practice Group Leader of Tax Elizabeth Bradley highlights the impact on foreign real estate investors. “Labour has put its colors to the mast over an increase in stamp duty for non-UK residents acquiring UK properties. They currently pay an extra 2% compared to a buyer living in the United Kingdom. Labor plans to increase that allowance by 1% to 3% to fund more planning officers as part of its strategy to get Britain building more houses.”
She added: “This is unlikely to have a significant impact on the build-to-rent sector as the abolition of the multi-dwelling exemption in early June has largely resulted in the sector now paying commercial rates. However, the sector may want to work with the new government to convince them to reintroduce multi-home support, on the basis that they provide the UK with much-needed new housing. Will they preach to the converted?”