In today’s announcement, the Chancellor introduced changes to Stamp Duty Land Tax, aiming to stimulate the housing market.
- The reforms include a 5% increase in the higher rate for additional dwellings, effective immediately.
- Over the next five years, these changes are expected to support over 130,000 home transactions.
- Despite these measures, experts highlight a lack of specific support for first-time buyers.
- Commentators voice concerns over the potential impact on rental supply and homeownership barriers.
The Chancellor’s announcement of amended Stamp Duty Land Tax is intended to invigorate the housing market by making homeownership more accessible. The government aims to aid first-time buyers and those wishing to move by setting a new higher rate for additional properties at 5%, effective from the 31st of October. This initiative is projected to foster over 130,000 property transactions in the coming five years, providing more citizens with stable and affordable living arrangements.
Part of the broader strategy includes a £5 billion investment to construct new homes and bolster small housebuilders. Rachel Reeves expressed optimism, asserting that these steps will bring the stability needed for buyers and the housing sector alike. The government underscores its commitment to increasing housing availability and supporting market dynamics.
Despite the ambitious plan, there are criticisms regarding the absence of focused support for first-time buyers. John Phillips, CEO of Spicerhaart and Just Mortgages, criticised the Budget, highlighting a pressing need for immediate action to mitigate affordability challenges, particularly for newcomers into the housing market.
Moreover, concerns have been raised about the looming end of Stamp Duty relief in April, potentially removing vital financial assistance for buyers. Some industry observers worry about possible ramifications on rental supply due to the Stamp Duty hike on secondary properties, which might subsequently elevate rental prices, adding pressure to potential buyers saving for deposits.
Stakeholders hope for growth following the Budget, anticipating that clarity and action post-announcement will spur buyer engagement and market movement. Speculation persists regarding a further base rate cut this year, which might encourage activity from both lenders and buyers.
The Autumn Budget’s Stamp Duty adjustments aim to support the UK housing market but face criticism for insufficient first-time buyer support.
