Buyers of homes under £500,000 should be given an 18-month stamp duty holiday to stimulate sales and investment, Aldermore has urged ahead of Wednesday’s Autumn Budget.
There was previously a stamp duty holiday in July 2020, which suspended stamp duty on properties up to £500,000 in a bid to stimulate the market during the covid-19 pandemic.
Aldermore also called for the government to reinstate the Help to Buy Equity Loan, which it dubbed ‘Help to Build’, with a government-backed equity contribution of 20% for new builds when buyers contribute 5%.
Danielle Soto, managing director for savings and business finance at Aldermore, said: “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.
“We’re also calling on the government to reinstate Help to Build with a government-backed equity contribution of 20% when buyers contribute 5%.
“This would 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.”
A survey of 2,000 prospective first-time buyers found that two-thirds (68%) reckon the government and mortgage industry must be more creative with incentives.
Nearly seven in 10 (69%) support reintroducing Help to Buy; more than a third (35%) want increased support for affordable housing supply; and about a quarter (24%) want stamp duty relief or higher thresholds.