On Wednesday, chancellor Rishi Sunak announced an increase in of £500,000 in the threshold for property stamp duty relief in England and Northern Ireland.
The general reaction to the news among the mortgage industry was positive, with the hope that the decision will get the market moving quickly after months of struggles amid the Coronavirus pandemic. However, they called for the extension in the duration of the stamp duty cut.
Property stamp duty relief – additional life to housing market:
HSBC UK head of buying a home Michelle Andrews says:
“This move by the Chancellor of the Exchequer is one that will inject additional life into the housing market. Making moving on or moving up the property ladder a bit more affordable for many. In the short-term, this will have a multiplier effect with many in property chains seeing the benefit.
Fantastic news for first-time buyers:
Newcastle Building Society customer director Stuart Miller commented:
“This is fantastic news for people looking to move home or buy a home for the first time and is very welcome news for the housing sector and the jobs within it, which have been so badly affected by the COVID-19 pandemic.
“For the North East, in particular, it means that almost 100 per cent of first-time buyers will be able to avoid paying stamp duty based on average property prices across the region.”
Quick route to improving supply is required:
The chief executive of Family Building Society, Mark Bogard also said:
“This tax has been gumming up the housing market for a long time and while the Chancellor’s announcement is to be welcomed it does not go far enough.
“The key to giving young people and the less well off the chance to own a home is to improve the supply side.
“Making the exemption temporary is no panacea.”
“Changes to planning regulations are essential but will take time. The obvious quick route to improving supply is to make it more financially viable for older people occupying homes that are too big for them to move home.
“So, incentivise them by cutting stamp duty for when they choose to move to smaller properties.”