Proposal aims to stimulate property sales and support developers and first-time buyers
Specialist lender Aldermore has issued a series of recommendations to the government ahead of the Autumn Budget, seeking policy interventions to revitalise the housing market and support those entering it for the first time.
The lender is advocating for an 18-month exemption from Stamp Duty on property purchases under £500,000, contending that such a measure would encourage transactions and provide cash flow relief to smaller builders.
The bank has also proposed the reintroduction of Help to Build, with a government-backed equity stake of 20% when buyers furnish 5% of funds themselves.
The recommendations stem from Aldermore's First Time Buyer Index, which surveyed 2,000 prospective purchasers entering the market. The findings indicate widespread appetite for government action, with 68% of respondents believing that both the government and mortgage sector should explore more innovative incentive structures.
Nearly seven in 10, or 69%, favour the return of the Help to Buy scheme. Just over one-third (35%) identify increased investment in affordable housing as a priority, while 24% single out Stamp Duty relief or a rise in thresholds.
"Today's Budget is a critical juncture for the Chancellor to help unlock growth," said Danielle Soto (pictured right), managing director for savings and business finance at Aldermore. "Delivering more homes depends on simplifying the planning system and increasing infrastructure investment, but the house building sector – particularly SME developers – also needs certainty and targeted support to scale up delivery.
"While the government has striven to reach its target of building 300,000 homes a year, the data on completed homes to date demonstrates this ambition is currently out of reach. Therefore, we must search for more creative and far-reaching solutions. The housebuilding sector, and SME developers who find themselves disproportionately impacted by red tape and complexity in particular, requires more certainty in order to achieve this."
Soto stressed that first-time buyers are equally in need of greater support. "That's why we're calling for an 18-month Stamp Duty holiday for buyers of new homes under £500,000 – to stimulate sales, support first-time buyers and help smaller developers maintain cash flow," she said.
"We're also calling on the Government to reinstate Help to Build to enable smaller builders to re-enter the market and accelerate delivery of new homes, especially in regional areas where major housebuilders are less active. While there is no single solution, these measures would provide meaningful help to both SME housebuilders and first-time buyers."
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