Regardless of the outcome of the election, change is definitely in the air. Whether this comes in the form of a Cabinet reshuffle or a change of Government remains to be seen.
Whatever the outcome, the Chancellor is sure to have a full inbox, but I would like to think that a revamp of property legislation is fairly close to the top. It is certainly needed. From higher interest rates to prices that are unattainable for many buyers, it is imperative that some form of wholesale change is introduced.
In my opinion, Stamp Duty is the most obvious starting point. At MT Finance, we have long been advocating for reform and reduction of the current system. While the Conservatives have promised that they will permanently raise the threshold for first-time buyers to £425,000 if they win the election, I’d like to see the Government – whichever party that is – go further.
Removing Stamp Duty for those who are downsizing would provide homeowners with an incentive to opt for smaller properties, while freeing up larger family homes. It could also help to stimulate the property market.
The crux of this issue though is that more homes are needed. The Conservatives, Labour and the Liberal Democrats have all promised to build a substantial number of new properties but unfortunately most manifestos are broken a lot of the time.
The fact that three of the biggest parties have all prioritised this shows their commitment, though.
To give these policies a fighting chance, it is crucial that developers are encouraged financially to ease the pressure of taking on such projects. After all, they’re still struggling with a lack of manpower – which Brexit hasn’t helped with – as well as a surge in the cost of building materials which haven’t corrected themselves post-Covid. Some form of reduction in taxes could help provide an incentive.
We also need to consider the challenges buy-to-let landlords have faced – and continue to face. As with the property market as a whole, the rental sector needs sweeping reforms to encourage landlords to come back to the market as they’ve been hit multiple times in the last few years. The Renters (Reform) Bill is still yet to pass, and any future legislative changes need to be discussed with the landlord community first to avoid them being scrapped later down the line.
While I can’t call the outcome of the election, I do know that whichever party wins has its work cut out. Buyers, sellers and lenders all need reassurance and stability alongside proactive policies, and I hope this is what we will receive from the next parliament.
Tomer Aboody is director of MT Finance
