The new Government faces growing calls to address the barriers preventing homeowners from moving, as fresh research suggests reforming stamp duty could unlock hundreds of thousands of property transactions across England.
New analysis from Jackson-Stops indicates that removing upfront stamp duty costs could encourage more than 300,000 owner-occupied homes to come onto the market within a year, with the figure rising to more than 750,000 over three years.
For mortgage brokers, increased housing mobility could translate into a stronger pipeline of purchase and remortgage activity, particularly at a time when affordability pressures and economic uncertainty continue to weigh on consumer confidence.
The findings also highlight the broader challenges facing the housing market beyond the need for new homes. While increasing housing supply remains a key political priority, the research suggests that reducing the financial barriers associated with moving could play an equally important role in improving market liquidity.
With 42% of prospective movers saying economic uncertainty has delayed their plans, industry leaders are urging policymakers to focus not only on boosting housebuilding but also on creating the conditions that encourage existing homeowners to move.
“Andy Burnham takes office having placed housing firmly at the top of his agenda. Building more homes is essential, but the health of the market also depends on helping existing homes circulate more freely, so that more people can make the move that is right for them.
Our latest research suggests that removing stamp duty costs could bring more than 300,000 owner-occupied homes onto the market across England within less than a year. At the same time, 42% of those whose moving plans have been delayed cited economic uncertainty as a reason.
The new Government therefore has an opportunity to restore confidence in the market by combining a clear commitment to housebuilding with stable economic management and a serious review of the upfront costs that continue to hold back buyers and sellers. If that can be achieved, we should see momentum return, more transactions progress and more people able to move when the time is right for them.”
Nick Leeming, Chairman of Jackson-Stops
Supporting Research
New analysis from the Jackson-Stops Housing Mobility Report suggests removing stamp duty costs could bring more than 300,000 owner-occupied homes to the market across England within less than a year.
The report estimates that figure could rise to more than 750,000 owner-occupied homes over three years, underlining the potential impact upfront moving costs can have on housing mobility.
The headline estimates are based on owner-occupiers in England who said stamp duty costs had caused them to delay, postpone or abandon moving plans in the last five years; who had not yet moved; and who said they would be likely to move within stated timeframes if this barrier was removed. Full report available on request.
