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Temporary stamp duty cut would encourage over a fifth of recent home buyers to move again

POSTED: 14th November 2017
IN: Newsroom
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  • Three in 10 (30%) prospective first time buyers would accelerate their plans to buy a home if stamp duty was temporarily reduced
  • Over two fifths (41%) of the nation wants to see the Government support the creation of more social housing
  • Over half (51%) of prospective first time buyers believe extending the Help to Buy scheme will improve the UK housing market

As the Chancellor, the Right Honourable Philip Hammond MP, prepares to deliver his Budget next week, the latest research from Aldermore, the specialist bank, has revealed that over a fifth (22%) of recent home buyers (bought less than three years ago) would consider moving home if stamp duty was cut for a temporary period, even if they had not been planning to do so beforehand.

In addition to this, almost one in six (15%) longer-term home owners (bought over four years ago) would be incentivised to move property if this proposal was implemented. A temporary stamp duty cut is also supported by prospective first time buyers, as three in 10 (30%) would consider accelerating their plans to climb the first rung of the ladder if the Chancellor announced this measure in his Budget.

 

Recent buyers (bought less than three years ago)

Long term homeowners (bought over four years ago)

Prospective first time buyers

Would consider moving if there was a temporary reduction in stamp duty

 

22%

 

15%

 

    30%

 


When asked what other measures should be put in place in the upcoming Budget to improve the housing market in the UK, over two fifths (41%) of the UK want to see more social housing built, and nearly four in 10 (39%) believe a stamp duty freeze for first time buyers would help the market.

Other measures that the nation wants to see include:

Suggested measures

% of respondents

Build more social housing

41%

No stamp duty for first time buyers

39%

No stamp duty for older homeowners looking to downsize

35%

Relax inheritance rules

30%

Government funded infrastructure

29%

Extending the Help to Buy Scheme

28%


For prospective first time buyers, over half (51%) want to see the Chancellor announce an extension of the Help to Buy scheme which is set to end in 2020. This is closely followed by ending stamp duty for first time buyers (47%), and over two fifths (44%) want the Government to relax current regulations to make it easier to get a mortgage.

On the other hand, nearly half (46%) of long term homeowners believe that scrapping stamp duty for those looking to downsize would benefit the UK housing market.

Charles McDowell, Aldermore’s Commercial Director, Mortgages, says: “With the property market at risk of coming to a standstill, we would welcome any plans, temporary or otherwise, that reduce stamp duty. Our findings show that over a fifth (22%) of recent buyers and almost one in six (15%) long term homeowners would consider moving home if the Chancellor announced this change in next week’s Budget, and it would be a decision that could kickstart market activity. A reduction in stamp duty would be particularly beneficial for first buyers who are struggling with an overly complex and costly system.

“It is clear from the findings that the nation believes more needs to be done by the Government to improve the housing market. There are a number of measures the Government can implement to improve the current situation, and we want to see housing at the top of its agenda in next week’s Budget. However, whilst it would be great for there to be changes in the tax system it can only have a limited impact, the underlying issue remains that more affordably houses need to be built.”

*Ends*

For further information, journalists can contact:

Rachael Snelling, Aldermore
Phone:          0208 1853 102
Email:           Rachael.Snelling@aldermore.co.uk

Follow us on Twitter: @AldermoreNews

Rozie Green, Lansons
Phone:          0207 566 9724
Email:            rozieg@lansons.com

Notes to Editors:

2004 online interviews with UK adults (aged 18+) were conducted by Opinium Research from 3 to 7 November 2017 with a sample of 1071 homeowners (bought their home 4 or more years ago), 201 recent buyers (bought their home within the last 3 years) and 212 prospective first time buyers.

For further information about Aldermore, please review our Notes to Editors page

 

 

 

 

 

  • Mortgages
  • Press Release

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