More than a fifth of recent home buyers (those who purchased less than three years ago) would consider moving home if stamp duty was cut for a temporary period, according to research carried out by specialist bank Aldermore.
In many cases these recent home buyers would consider a move even if they hadn’t been planning one beforehand, highlighting the incentive that a stamp duty cut could bring.
With the Chancellor, Philip Hammond, set to deliver his Autumn Budget next week, the research also found that 15% of longer-term home owners (those who bought over four years ago) would be encouraged to up sticks if a stamp duty reduction was introduced.
Potential first-time buyers also welcome the prospect of a temporary stamp duty cut, with 30% saying they would accelerate their home buying plans if Hammond were to make concessions in the upcoming Budget.
Participants were also asked which other measures they would like to see implemented in the Budget to improve the UK housing market, with 41% calling for more social housing and 39% of the opinion that a stamp duty freeze for first-time buyers would benefit the market. Other measures included a freeze on stamp duty for older homeowners looking to downsize (35%), a relaxation of inheritance rules (30%) and an extension of the Help to Buy scheme (28%).
Among first-time buyers, 51% would like to see the Help to Buy scheme – set to end in 2020 - extended by the Chancellor as part of the Budget, while 41% would like to see stamp duty ended for those trying to get on the first rung of the ladder. Meanwhile, 44% want the government to relax current regulations to make securing a mortgage easier.
Elsewhere, 46% of long-term homeowners think that scrapping stamp duty for older homeowners looking to downsize would aid the housing market.
“With the property market at risk of coming to a standstill, we would welcome any plans, temporary or otherwise, that reduce stamp duty,” Charles McDowell, Aldermore’s commercial director of mortgages, said.
“A reduction in stamp duty would be particularly beneficial for first buyers who are struggling with an overly complex and costly system.”
He added: “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.”