Leading figures from across the property sector have urged the Chancellor to use this month’s Winter Budget to restore confidence in the housing market, warning that further tax increases or short-term policies could deepen stagnation in both sales and investment.
Agents and buying specialists are calling for a mix of targeted tax reform, support for first-time buyers, and incentives to encourage movement at the top and bottom of the market.
They argue that uncertainty over potential fiscal changes has already dampened activity and left many would-be buyers and sellers on the sidelines.
Among the key measures being called for are stamp duty reform, relief for downsizers, and policies to encourage responsible landlords back into the private rental sector amid a continuing shortage of supply.
NEED OF STABILITY
Industry leaders say such initiatives would provide much-needed stability after years of volatility in house prices and borrowing costs.
Matthew Thompson, head of sales at estate agency Chestertons, says: “The property market is in dire need of stability.
“What buyers and sellers really need is consistency rather than short-term headlines. Speculations over the Budget announcements have left very little hope for positive news, however, we would like the Chancellor to consider a potential stamp duty reform or relief, meaningful support for first-time buyers and incentives that encourage downsizers to move.
“The top end of the property market, which a lot of homes in London fall into, is being held back by high transaction taxes so any further taxation will not help restore confidence amongst buyers or sellers.
“Lastly, whilst the government has been focused on discouraging buy-to-let investment, we would like to see measures that encourage responsible landlords back into the market to help increase the number of rental properties.”
FRAGILE CONFIDENCE
Nigel Bishop of buying agency Recoco Property Search warns that confidence is already fragile
He says: “There is little to no hope of the government announcing any positive news this Budget which is already hindering house hunters from making major financial decisions, let alone finalising their search.
“There’s a certain irony to the current market sentiment as it is a strong buyer’s market but the majority of house hunters simply don’t want to take advantage of this as the economic climate has killed buyer confidence and, with that, the property market.
“The key to regaining confidence is to minimise stamp duty implications. To get the property market moving again, we would also like the Chancellor to really think about how changes to Inheritance Tax or Capital Gains Tax, for example, could have an incredibly negative long-term impact.
“To avoid punishing homeowners, we hope for the Budget to include other, more balanced solutions that tackle the UK’s hole in public finances.”
TAX RISES COULD BACKFIRE
And James Nightingall, founder of HomeFinder AI, reckons that any tax rises targeting wealthier households could backfire.
He says: “We expect the Budget to include tax increases for the UK’s wealthy but want to remind the Chancellor that this move contributed to last year’s exodus of HNWIs and resulted in a loss of investment, talent and business opportunities for the UK.
“It also didn’t have the positive outcome for the property market that the government had hoped for with many of the investment properties still standing empty as house hunters remain cautious.
“To drive buyer confidence, we hope for the Budget to include some incentives or initiatives; particularly for first-time buyers who struggle to get on the property ladder or save up a sufficient deposit.”
