A major theme for this year’s budget needs to be the supply of homes and mobility in the property market, according to two relevant agencies.
The National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA) are calling on the Chancellor to support mobility in the property market by addressing, what they call “the unfair and hugely expensive stamp duty slab structure which restricts home ownership” and to “reiterate support for institutional investment in the private rented sector by fully regulating the industry.
Mark Hayward, managing director of NAEA and Ian Potter, managing director of ARLA, called for affordability to be a main focus of the budget.
“It is vital that the Government takes a long-term approach to the challenges facing home buyers – and tackling stamp duty has to be part of that plan,” said the pair.
“Stamp duty is hugely unfair and requires people to part with thousands of pounds up front. In its current ‘slab structure’, it distorts the UK housing market, acts as a barrier to first-time buyers and therefore restricts the demand to build new homes.
“Although the jury is currently out on its long term impact – Help to Buy is a good temporary measure, but tackling stamp duty is an achievable, long-term and sustainable way to support access to, and mobility up, the housing ladder.
Rental market regulation
“For those who choose to rent, or cannot afford to buy, many will have experienced first-hand the tight supply of the UK rental market. For the first time since the 1960s, more people now live in private rented accommodation than in social housing, with 3.8 million tenants – a 30 per cent rise over the last five years. Pressures are acute, and yet the industry remains unregulated. Restricted supply leads to increases in rogue landlords and the number of tenants forced to choose inadequate properties.
“ARLA has always campaigned against poor practice and our members adhere to a professional code of conduct. As a consequence, we urge the government to introduce a full mandatory regulation of agents. Regulation will bring two key benefits: better standards for those using industry services and, a much needed stamp of professionalism and quality on the lettings industry which will help trigger the much-needed investment in a large-scale development of homes by professional organisations. The industry needs to be seen as stable, attractive and above all comprehensively regulated in order for significant investment to be secured. This needs to happen so that we all have a place to live.”
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