Aldermore research has found that 22% of recent home buyers (bought less than three years ago) would consider moving home if stamp duty was cut for a temporary period, even if they had not been planning to do so beforehand.
In addition, 5% of longer-term home owners (bought over four years ago) would be incentivised to move property if this proposal was implemented.
A temporary stamp duty cut is also supported by prospective first time buyers, as 30% would consider accelerating their plans to climb the first rung of the ladder if the Chancellor announced this measure in his Budget.
| Recent buyers (bought less than three years ago) | Long term homeowners (bought over four years ago) | Prospective first time buyers | ||
| Would consider moving if there was a temporary reduction in stamp duty |
22% |
15% |
30% |
|
When asked what other measures should be put in place in the upcoming Budget to improve the housing market in the UK, 41% of the UK want to see more social housing built, and 39% believe a stamp duty freeze for first time buyers would help the market.
Other measures that the nation wants to see include:
| Suggested measures | % of respondents |
| Build more social housing | 41% |
| No stamp duty for first time buyers | 39% |
| No stamp duty for older homeowners looking to downsize | 35% |
| Relax inheritance rules | 30% |
| Government funded infrastructure | 29% |
| Extending the Help to Buy Scheme | 28% |
For prospective first time buyers, 51% want to see the Chancellor announce an extension of the Help to Buy scheme which is set to end in 2020. This is closely followed by ending stamp duty for first time buyers (47%), and 44% want the government to relax current regulations to make it easier to get a mortgage.
On the other hand, 46% of long term homeowners believe that scrapping stamp duty for those looking to downsize would benefit the UK housing market.
Charles McDowell, Aldermore’s commercial director, mortgages, said:“With the property market at risk of coming to a standstill, we would welcome any plans, temporary or otherwise, that reduce stamp duty. Our findings show that over a fifth (22%) of recent buyers and almost one in six (15%) long term homeowners would consider moving home if the Chancellor announced this change in next week’s Budget, and it would be a decision that could kickstart market activity. A reduction in stamp duty would be particularly beneficial for first buyers who are struggling with an overly complex and costly system.
“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. However, whilst it would be great for there to be changes in the tax system it can only have a limited impact, the underlying issue remains that more affordably houses need to be built.”