Mortgage brokers are urging the government to prioritise Stamp Duty Land Tax reform alongside enhanced support for first-time buyers.
Research from Accord Mortgages, which was conducted in partnership with Pegasus Insight, revealed 69 per cent of brokers believe SDLT reform is “critically” important to ensure a buoyant future housing market.
This ranked higher than support for first-time buyers or wider affordability measures.
Brokers said they believe SDLT is acting as a “significant barrier”, not just for buyers entering the market, but also for existing homeowners wanting to move.
In particular, they pointed to older homeowners unable to downsize due to the prohibitive cost of SDLT, limiting the supply of family homes.
Accord Mortgages managing director, Jeremy Duncombe, said: “Brokers are seeing first-hand how it discourages people from moving, downsizing or upsizing, which in turn restricts supply and creates knock-on challenges for first-time buyers trying to get on the ladder.
“The solution doesn’t lie in a single silver bullet, but in smarter, targeted reform. SDLT needs to better reflect modern housing needs, encouraging movement rather than penalising it.”
The research found that support for FTBs remains a “major concern” for the intermediary community, with 61 per cent of brokers stating that government backing for them should be a top priority.
Meanwhile, 47 per cent highlighted affordability as a “key issue”.
“At the same time, meaningful support for first-time buyers — whether through innovative lending solutions – such as our £5,000 Deposit Mortgage, improved affordability measures, or targeted support schemes- will be vital to restoring balance and long-term market stability,” Duncombe added.
Finally, the research highlighted broker support for making better use of existing homes as 33 per cent of brokers said repurposing exciting housing stock should be a greater priority than new-build development alone.
This would accelerate an increase in supply which is needed to ensure sufficient homes for different needs as well as to control price rises.
tom.dunstan@ft.com
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