A housing tax overhaul could rebalance the UK housing market and rekindle activity across all tenures, according to new figures from the RICS.
Half of respondents to the RICS Residential Market Survey said using tax incentives to encourage downsizing alongside changes to stamp duty and council tax would help thousands more young people buy a home.
Abdul Choudhury, RICS policy manager said: “If we consider tax in terms of how they disincentivise certain behaviours, SDLT makes purchasing, moving and making more effective use of stock costly at a time when we need all these things. Council taxes, on the other hand are woefully out of date and are highly politicised.
“Any changes to the system of tax should be considered carefully, as they would have disruptive consequences that could negatively impact activity. Providing an SDLT exemption for downsizers could free up larger, underused properties, but will likely provide them with a market advantage over other participants.
Further recommendations from the survey include:
■ extending Help-to-Buy past the current 2021 deadline for first-time buyers; and
■ providing more funding to extend the supply of submarket tenures and implementing a rental framework that links uplift to inflation.
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