Property  

Investors want support beyond stamp duty cut

Investors want support beyond stamp duty cut

 

The government is not doing enough to support the housing market despite its generous nine-month stamp duty holiday, according to a survey of investors.

A survey from FJP Investment, carried out in August, found 42 per cent believed the government needed to offer more support to homebuyers and property investors beyond its temporary stamp duty relief on £500,000 of the purchase price.

More than half (54 per cent) were in favour of extending mortgage payment deferrals beyond October 31, the date when applications for a deferral are due to end for borrowers who have not yet taken one.

At the same time a quarter (24 per cent) of investors were planning to purchase one or more properties to take advantage of the temporary stamp duty cut, with the figure rising to 43 per cent for those aged between 18 and 34.

Last month the Financial Conduct Authority issued a call for input on how firms should treat consumers who are coming to the end of their second mortgage payment deferral, as it considers extending its current guidance beyond October.

However, the research also found more than half (54 per cent) of investors had lost confidence in the government based on how it handled the coronavirus pandemic, with almost six in 10 (57 per cent) believing more financial relief was needed to support UK businesses affected by the coronavirus.

This could have been amplified by the recent news from the Office for National Statistics that the UK is in the largest recession on record, said Jamie Johnson, CEO of FJP Investment.

He said: “[The] research shows that investors are clearly worried about the long-term financial consequences of the pandemic. News of the UK entering a recession will likely have shaken confidence further, too.

“One of the key findings is that faith in Boris Johnson’s government is waning. While there is support for the financial support schemes and economic stimuli that have been introduced so far, investors feel that much more must be done if the UK’s post-pandemic recovery is to be successful.”

The survey was conducted among more than 900 UK-based investors with investments and savings over £10,000, excluding the value of their residential property and workplace pensions.

chloe.cheung@ft.com