UK Housing Market: What the Next Government Should Tackle
The UK housing market is in dire need of reform, and the next government has a crucial role to play in addressing the pressing issues affecting homeowners and renters alike. According to a recent survey by Rightmove, the UK’s largest property portal, there are several key areas that require immediate attention.
Stamp Duty Reform
Top of the list is a reform of the stamp duty system. The current system is in dire need of an overhaul, with many calling for a more regional approach to reflect the vast differences in property prices across the UK. In London, for instance, only 4% of homes for sale are exempt from stamp duty charges, compared to 71% in the North East. A reformed system could help stimulate movement in the market and encourage more people to downsize.
Simplifying the Homebuying Process
The second most requested change from homeowners is to simplify and speed up the homebuying process. Currently, it takes an average of seven months from when someone puts their home up for sale until they move. Streamlining the process could help reduce the stress and uncertainty associated with buying and selling a home.
Accelerating Housebuilding
The acceleration of housebuilding and long-term solutions to help affordability is another area that has been listed as a priority for the new government. The UK is facing a severe housing shortage, with national average asking prices of homes now 22% higher than five years ago, at £375,131. The gap between supply and demand has widened, with buyer demand rising by 15% since April 2019, while supply has decreased by 6%.
Green Incentives
Green incentives are also high on the list of priorities for the next government. With the focus on helping people make their homes greener having fallen off the government’s agenda in recent years, there is a lack of awareness among homeowners about what changes they should make and why. A proposed deadline for landlords to improve homes up to an energy performance certificate rating of C was scrapped, and Rightmove’s research shows a decline in the number of landlords planning to make energy-efficiency upgrades to properties with lower EPC ratings.
The UK housing market is in need of reform
Conclusion
The next government has a critical role to play in addressing the pressing issues affecting the UK housing market. By reforming stamp duty, simplifying the homebuying process, accelerating housebuilding, and introducing green incentives, the government can help stimulate movement in the market, encourage more people to downsize, and make homeownership more affordable for all.
Accelerating housebuilding is key to addressing the housing shortage
