Skipton Building Society chief urges Government to remove 'additional barrier' for first-time buyers
Skipton Building Society has called for significant changes to property taxation, highlighting the need for stamp duty reform to help first-time buyers enter the housing market.
“Taking away the friction from buying and selling is only going to be a good thing here, and ultimately it just reduces that additional barrier for people looking to move either into or flow through the housing market,” Stuart Haire, chief executive of Skipton Building Society, said in a City AM report.
“If [housing] starts to become unattainable, then actually the whole aspirational culture that drives economies [is under threat],” he says. “People wanting to do better than their parents, people wanting to live their [own] version of their lives… starts to be drawn into question. That’s why this is so important.”
Haire’s comments come as debate intensifies over the potential changes in property taxes and their impact on both new and existing homeowners.
Recent proposals have included the possible introduction of capital gains tax on higher-value property sales, a move some analysts warn could discourage downsizing and limit the availability of larger homes. Meanwhile, thinktanks have continued to argue that both Stamp Duty and Council Tax require urgent reform, claiming the current system restricts market activity and places a disproportionate burden on those at the lower end of the property ladder.
Skipton’s position is supported by recent figures from Zoopla, which show that higher stamp duty costs now affect 83% of homeowners and 41% of first-time buyers, up from 19% last year.
Analysis of HMRC data, found that homebuyers paid £9.3 billion in Stamp Duty between January and August this year—a 20.6% increase from the £7.7 billion collected during the same period in 2022. August’s Stamp Duty receipts stood at £1.3 billion, slightly below the £1.4 billion recorded in July. The July figure may prove to be the year’s highest, as speculation about potential reforms continues.
Reports in mid-August suggested the government could abolish Stamp Duty in the upcoming Autumn Budget, possibly replacing it with a new tax on sellers of homes valued above £500,000. Ministers are also said to be considering allowing buyers to pay Stamp Duty in instalments over several years, rather than as a single upfront payment. While this could ease the immediate financial burden for purchasers, it may also introduce uncertainty and prompt some to delay transactions.
The Autumn Budget is scheduled for Nov. 26.
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