Following the abolishment of stamp duty fees for first-time buyers, John Elliott, Managing Director of Millwood Designer Homes, discusses the need for further market reforms.
Following the first-time buyer stamp duty abolishment, which came in to effect in November last year, I believe further reforms are necessary to support the entire market. Whilst first-time buyers are undeniably getting the help necessary, stamp duty is a great impediment to everyone.
The measure taken by the Chancellor last year to eliminate stamp duty at the bottom end of the market was initially appealing, however only creates a mirage of impending action. The National Association of Estate Agents (NAEA) has since revealed a slow down in the first-time buyer property market. Seemingly, first-time buyers are skipping purchasing smaller properties, or a typical ‘first home’ in order to save for longer and buy a larger home, minimising moving costs and maximising stamp duty savings. This in turn, is causing paralysis in the surrounding market as less buyers are looking to move all together at this current time.
I believe, the Government are required to roll out more reforms in order to stimulate the whole market and support the entire property chain, not just the lower end. At Millwood, we strive towards providing homes of all price brackets, inclusive of all buyers, helping them onto or to step up on the property ladder.
By offering schemes and incentives, such as stamp duty paid for all buyers on selected plots and Help to Buy throughout several of our developments, we are not limiting ourselves to a ‘one size fits all’ target market, as this is simply not the case for the current market.