Targeted Support to Ensure Strong Housing Market Recovery Should be Central to Budget says JLPM
The housing market has shown remarkable resilience over the last 12 months, but targeting support in this week's Budget to ensure a full recovery is fundamental to fully restore confidence, stability, and growth. Robert Burdett, MD at property management firm James Leigh Property Management has called on Chancellor Rishi Sunak to consider carefully the support he can provide for the housing market, a key economic driver, in this week's Budget.
Robert Burdett, MD at James Leigh Property Management said, "targeting specific support at the right time and at the right sectors of the housing market will continue its recovery. Now is the time for the Chancellor to think carefully about the support that he can make available to ensure that the housing market recovery continues into the long term."
Mr. Burdett continued, "It's not simply the case that housebuilders should be supported, but construction, sales, and the rental sector all face their challenges so I believe that the Chancellor should consider how he can support the whole industry."
Areas, where the Chancellor could provide support, are:
• A support package for tenants to help them clear rent arrears similar to the schemes rolled out in Wales and Scotland.
• Extension of the furlough scheme so that tenants can continue to pay their rent, and provide a level of stability and confidence for lenders as the wider economy recovers over the Summer.
• A three-month extension of the Stamp Duty holiday.
Each of these measures provides confidence and support to different areas of the housing market, but as a whole means that one part of the market won't impact another.
Support for tenants means that landlords can continue to collect their rents, ensure their properties are maintained properly, and continue to invest, creating sufficient homes for renters. And extending the furlough scheme not only ensures that renters have their income protected to continue making the rent payments but continues to support the wider economy and ensure that house sales continue.
Finally, the already announced news that the Stamp Duty holiday is to be extended is welcome and prevents the anticipated bottleneck in March and inevitable slowdown that has been forecast, albeit temporary.
Robert Burdett said, "It's good news that the Chancellor has already announced the extension of the Stamp Duty holiday, but this measure alone doesn't go far enough to support the housing market going forward. A show of strength and real support from the Chancellor in his Budget this week will maintain fragile confidence and ensure that the housing market recovery continues on a sure footing into the long term.