Introduction
As the general election approaches, most prospective home-movers (95%) remain unaffected in their plans. However, political parties are outlining their housing policies, so we gathered insights from over 14,000 people, estate agents, and our experts. Here’s what we found: the next government should focus on accelerating house-building, supporting first-time buyers, revising stamp duty costs, and incentivising green home improvements.
1. Speeding Up House-Building and Supporting First-Time Buyers
More New Homes Needed
Increasing the speed of house-building while maintaining quality is crucial. The demand for homes has risen by 15% since 2019, but the supply has decreased by 6%. In the rental market, demand has surged by 32%, while available homes have dropped by 38%. This imbalance has led to a 22% increase in national average asking prices and a 40% rise in rents.
Our property expert Tim Bannister highlights the need for smoother planning processes to boost affordable housing. This change could benefit first-time buyers and provide opportunities for downsizers to move to greener homes with lower running costs.
Long-Term Solutions for First-Time Buyers
The most requested change among renters is more support for first-time buyers. Elevated mortgage rates have made it challenging for many to save for a deposit and qualify for a mortgage. Our mortgage expert Matt Smith suggests reviewing mortgage affordability criteria to unlock greater affordability responsibly. Longer mortgage terms and fixed rates could provide stability for first-time buyers.
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2. Reforming Stamp Duty
Reforming the stamp duty system is a significant change that home-owners and agents desire. The current system presents a barrier, especially in higher-priced areas, preventing many from moving. Since 2022, first-time buyers in England and Northern Ireland have been exempt from paying stamp duty on properties priced up to £425,000, but this relief is set to end next year.
Tim suggests making these changes permanent and aligning stamp duty thresholds with regional property price differences to encourage movement up and down the property ladder.
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3. Green Home Improvement Incentives
Home-owners and renters alike want the government to provide incentives for making homes greener. A proposed deadline for landlords to upgrade homes to an EPC rating of C was scrapped, and there is a need for better awareness and access to schemes that enable green improvements.
Currently, upfront costs are a significant barrier, so the next government should prioritise making green improvements more accessible and affordable.
4. Simplifying and Speeding Up the Home-Buying Process
The second most requested change from home-owners is simplifying the home-buying process. The current average timeframe from listing a home to moving is over seven months. This lengthy process is stressful and frustrating. The next government, in collaboration with the property industry, should focus on creating a seamless and quicker home-moving experience.
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Home-Owner and Renter Priorities
Home-Owners:
- Reforming the stamp duty system
- Simplifying the home-buying process
- Incentives for green improvements
- More mortgage schemes to aid moving
- Incentives for downsizing
Renters:
- More support for first-time buyers
- More mortgage schemes to aid moving
- Simplifying the home-buying process
- Building more homes
- Legislation for energy-efficient rental homes
How Angel Properties Can Help
At Angel Properties, we understand the challenges of the current housing market. Whether you’re looking to sell your house quickly or need guidance on navigating the property landscape, we are here to assist. Our team provides tailored solutions to help you achieve your property goals efficiently and effectively.
Visit Angel Properties to learn how we can help you sell your house fast and explore our request a valuation service to get started today.
Original Link: https://www.rightmove.co.uk/news/articles/property-news/general-election-2024-housing-changes-needed/
