With just eight weeks until the Chancellor delivers the Budget, Coventry Building Society has cautioned that proposed tax reforms could have significant knock-on effects for the wider housing market, ultimately making it harder for first-time buyers (FTBs) to access homeownership.
Reports suggest the Treasury is considering measures including scrapping Stamp Duty for buyers and shifting the liability to sellers of homes worth more than £500,000, introducing the option for Stamp Duty to be paid in instalments, ending Capital Gains Tax (CGT) exemptions on main residences above certain thresholds, and extending National Insurance contributions to rental income.
According to Coventry Building Society, such reforms may appear targeted at wealthier homeowners and landlords but could reduce housing supply, increase rents, and limit financial support from downsizing, all of which would affect aspiring buyers.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “On the surface these changes don’t look like they touch first time buyers – but the hidden consequences could be huge.
“When you shake the top of the ladder the impact is felt all the way down – which is why any reform has to be carefully thought through, to avoid creating problems for the people who need support the most.”
