26th October, 2017
Our industry regulator, NAEA Propertymark is calling on the Chancellor to exempt both first-time buyers and downsizers from Stamp Duty and to abandon the 3% surcharge on the purchase of second homes. This appears to be a bid to inject some more activity into the property market.
The NAEA’s views were submitted to Philip Hammond ahead of his Budget next month. The NAEA also says it wants to see a ‘Help to Buy’ type of scheme introduced for those buying secondhand property (rather than just new-builds).
The NAEA has reiterated its call for the regulation of estate agents and has asked for improved guidance around the Consumer Protection Regulations.
jdm Estate Agents as an NAEA regulated branch of estate agents fully supports the perspective offered to the Chancellor. Partner Jonathon de Maid says “in our view this could make quite a difference to affordability, given then the biggest challenge for first time buyers is raising the necessary deposit.?
There is no doubt that the incredibly stringent stamp duty regime introduced in April 2016 has impacted the local property market affecting around a quarter of residential property sales since its inception. Governments have long been warned that the stamp duty hikes damage economic growth and distorts the market by making it more expensive to move home and harder for first time buyers to join the housing ladder.
Richard Piddock, partner says, “…Stamp duty is a big factor, especially in our area where the average property value is around £600,000, this equates to an additional bill of £20,000. This impact is even greater since the new regime above £1,100,000. For example if you are buying a house at £1,500,000 the stamp duty is now £93,750, an increase of £18,750….”.
The NAEA’s second crusade calling for regulation of the estate agency market is something that is long overdue to ensure that the consumer is protected from rogue estate agents who practices are questionable. Consumers should be assured that they are dealing with experienced and trained professionals that they can trust.