Desire to Own a Home is Rising in the UK, but Many Support Stamp Duty Surcharge

The desire to own a home is rising in the UK, but many homeowners and prospective homeowners support the Stamp Duty surcharge for landlords, which could have unintended consequences on first time buyers’ ability to get onto the property ladder.

The latest Homeowner Survey from the HomeOwners Alliance found that homeownership dreams are on the up amongst young people in the UK, but so too are concerns about the availability and quality of housing.

More people now desire to own their own homes, says the report, with the proportion of non-homeowners who aspire to own their home rising to almost three quarters (73%) this year, up from 65% four years ago.

The proportion of aspiring homeowners that say availability of housing is a serious problem has soared to 78% this year, up from 72% in 2015. Hopeful first time buyers are also increasingly concerned about the quality of housing, with 60% describing it as a serious issue.

However, the nation’s top housing concerns continue to be house prices, the ability to get onto the property ladder and saving for a deposit.

Desire to Own a Home is Rising in the UK, but Many Support Stamp Duty Surcharge

The Chief Executive of the HomeOwners Alliance, Paula Higgins, comments: “Despite a blizzard of Government initiatives aimed at helping homeowners, the housing crisis is deepening across the country, with ever more non-homeowners wanting their own home and ever greater concern about the lack of housing. Many Government policies have boosted demand for homes, but what this survey shows is that the real problem is the desperate shortage of houses.

“Until the Government tackles the fundamental issue that we just don’t have enough good quality homes, the housing crisis will continue to deepen and a generation will continue to have their dreams of homeownership crushed.”

Prospective homebuyers across the country will be shocked to hear of the latest Help to Buy ISA scandal, which proves that first time buyers cannot use the Government’s promised bonus to put towards a deposit. Read more here: /help-to-buy-isa-scandal/

The report adds that London is a hotspot for housing concerns. The capital has recorded higher levels of concern than the UK overall for house prices, availability and quality of housing, ability to get a mortgage/remortgage, Stamp Duty rates, gazumping and the leasehold/freehold system.

However, the study also found that many homeowners or aspiring homeowners support the new Stamp Duty surcharge for additional homes, which could in fact halt the journey of first time buyers even further.

More than twice as many people (47%) support the 3% Stamp Duty surcharge than oppose it (18%).

The policy is seen to support first time buyers and homeownership. However, those that oppose the tax hike believe it could have unintended consequences; landlords may put their rents up as they pass the costs onto tenants, or stop investing in the sector altogether.

Despite this, concerns over Stamp Duty have fallen dramatically since the Government reformed the system in 2014. Two years ago, two-thirds of UK adults (64%) said Stamp Duty was a serious problem, compared to half (52%) today.

Those in support of the surcharge explain why:

“It might help reduce number of people buying property for financial gain and allow first time buyers to have a chance.”

“Buy-to-let are pricing people out of where they were brought up, so anything to make it fairer for them I support.”

“If you can afford to buy another property, you can afford to pay tax on it.”

Those that oppose the additional Stamp Duty believe:

“There is a great need for private rental properties – this is just another way of the Government raising taxes to the detriment of others.”

Do you believe that the Stamp Duty surcharge will push rents up, further driving hopeful first time buyers away from their dreams of homeownership?