Five Point Plan to Support Housing Market Should Be Chancellor's Priority in Budget
The housing market is a key economic driver and should be given the support it needs to encourage stability and growth during 2021 to place it on a firm footing for future years. But housing market professionals warn that not taking the right steps now could hamper future growth in the housing market that could impact the wider economy.
Gavin Perrett, Director at Hawkhurst Invest, a property investment consultancy, said, "putting in place the right support for the housing market in this week's Budget means that the Chancellor will be setting construction, sales, and rental sectors in the market up for a successful future as we exit the Coronavirus pandemic and slowly return to normal. But it's crucial that the right support is put in place."
Mr. Perrett continued, "there are five key steps that Chancellor Rishi Sunak can take. These include a further extension and tapering of the Stamp Duty holiday, small deposit support enabling 95% mortgages, additional support for the self-employed who have suffered at the hands of lenders, re-introduction of the Help to Buy ISA scheme, and finally, the Chancellor should resist the temptation to increase Capital Gains Tax on investment properties.
The five key steps to effectively support the housing market in this week's Budget are:
• Extension of Stamp Duty Holiday until end of June with a phased return to normal from then until the end of September
• Government support to those with small deposits enabling 95% LTV mortgages for first-time buyers and home movers on all properties - not just new build
• Government support to the self-employed enabling easier mortgage lending through government-backed guarantees for the SE sector who are currently being penalised by lenders
• Reintroduce the Help to Buy ISA to assist first-time buyers
• Resist the temptation to increase Capital Gains Tax on investment properties
These steps, alongside support for the wider economy, support the stability and recovery of the housing market during 2021 and ensure that the market is on a stable footing as the UK exits the Coronavirus pandemic and slowly returns to normal.