Latest News

Land Transaction Tax (LTT) nil rate band extended

04 March 2021

On 3 March 2021, the Welsh Government announced that the temporary increase to the nil rate band of LTT for residential property transactions will be extended to 30 June 2021. Read More...

Campaign leads to extended Stamp Duty holiday

03 March 2021

The Chancellor has listened to Propertymark’s calls to avoid a cliff-edge deadline to the Stamp Duty Land Tax holiday in the UK Government’s budget, today, 3 March 2021. The nil rate band up to £500,000 will end on 30 June, instead of March. A transitional nil rate band up to £250,000 will be in place until the end of September and then return to £125,000 from October, with first-time buyers continuing not to pay stamp duty on properties up to £300,000. Read More...

Estate agents lose over £4,000 for every property sale that falls through

25 February 2021

Research carried out by Propertymark over the last year found an average of 17 property sales fell through, with 42 per cent of respondents saying failed sales are a significant problem for businesses. Read More...

Possible stamp duty extension

24 February 2021

Propertymark’s Chief Policy Advisor Mark Hayward has today welcomed speculation in The Times that the Chancellor may extend the Stamp Duty Holiday in England until the end of June, in next week’s budget. Read More...

 

 

Propertymark calls for stamp duty holiday extension in budget manifesto

Thursday 04 February 2021

Ahead of the budget on 3 March, Propertymark has published its manifesto asking for ten changes the UK Government to make to support the housing sector. Principal changes are a continuation of the cut in stamp duty and extending the Help to Buy scheme to the second-hand homes market.

Propertymark also asks the UK Government to guarantee tax relief to those who’ve had an offer formally accepted prior to the current end of the policy.

To prevent transactions falling through, price falls, and a sudden loss of momentum in the market, an extension of the stamp duty holiday is called for beyond 31 March. Since the introduction of the property tax cut, the housing market has boomed. Figures from Propertymark’s November Housing Market Survey show the highest recorded sales figures for November since 2002. In addition, year-on-year, the average number of sales agreed per branch has increased by 86 per cent.

The Government should extend the current stamp duty holiday by another six months and clarify the qualifying criteria for the relief at the end of any set period. Providing support to the housing market is essential to help the wider economy recover once the current period of lockdown restrictions ends.

More support for first-time buyers

To help more people get on the housing ladder the UK Government should extend the Help to Buy scheme to second-hand homes. Currently, the Resolution Foundation estimates that it would take a first-time buyer in their late 20s around 18 years to save up for a deposit, relying solely on their own savings. Without additional support, many will struggle to get the funds together to buy their first home.

By extending the Help to Buy scheme to second-hand homes, including new builds put up for resale, the UK Government would create demand and further stimulate the economy. It can work because it would increase a housing sale chain from one to at least three and possibly five other transactions.

Supporting key workers

Other proposals also include establishing a Government-backed mortgage guarantee scheme for key workers to help them get on the property ladder. This policy would help key workers move to higher-priced areas where their skills are in demand. As well as helping more people get onto the property ladder, the scheme would recognise the hard work of those deemed essential during the pandemic and help recruitment and retainment of staff for public sector organisations.

bring empty homes back to use

Finally, the UK Government should re-start the Empty Homes Community Grants Programme to help bring vacant houses back into use. Currently, over 600,000 homes are currently unoccupied in England, twice the Government’s housebuilding target of 300,000.

Reducing the number of empty houses would help regenerate blighted areas, improve housing conditions, increase Council Tax collection rates, and produce savings on temporary accommodation expenditure. Re-establishing the Empty Homes Community Grants scheme would help support a healthy housing market and support the Government’s ‘leveling up’ agenda.

Quote mark

It’s been an unprecedented year for everyone, and this includes the housing sector. The property market has remained remarkably resilient during the lockdown periods so far and the Government has prioritised a functioning property market. However, there is still progress to be made and we’re calling upon the government to make these recommended changes in order to continue to support agents, landlords, consumers, and the wider housing market.

We’re particularly concerned about the impact of the stamp duty holiday ending with a cliff edge in March as this could cause thousands of sales to fall at the final hurdle and have a knock-on and drastic effect on the housing market which has recovered well from the COVID-19 slump.”

Mark Hayward, Propertymark Chief Policy Advisor