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Housing market ‘can’t rest on laurels’ post-stamp duty holiday

Housing market ‘can’t rest on laurels’ post-stamp duty holiday

The housing market “can’t rest on its laurels” following the surge in house buying activity created by the end of the stamp duty land tax holiday, which officially wound down this month.

That’s according to David Hollingworth, associate director of communications at L&C Mortgages, who joined FTAdviser’s latest podcast.

Hosted by Damian Fantato, digital editor at FTAdviser, the podcast explored what the future of SDLT looks like, and how the tax's future could impact the housing market.

"We’ve always wanted to see different reforms [to the tax] and that conversation has gone on for a long time now and it’s likely to persist," said Hollingworth. 

“I don’t think it’s likely we’re necessarily going to see it [SDLT] disappear permanently. It’s just, how much does it stop buyers buying?

“Demand will continue for some time, and of course that’s supported by the very low mortgage rates that we currently have. “

But Hollingworth warned: “We can’t rest on our laurels, because there’s certainly going to be some upwards pressure on rates.”

On the question of potential changes to the SDLT in the future, fellow guest Mark Hayward said there would likely be a “wholesale evaluation” of property taxes - including others, such as capital gains tax.

“Let’s face it, [the government has] done very well out of this in terms of revenue,” Hayward highlighted.

During the SDLT holiday, the Treasury collected £13.5bn in tax receipts from July 2020 to the end of September 2021.

“They need that revenue. We know the government is looking for income wherever it is. So, I don’t think we’re going to see, certainly not in this spending review, a wholesale giveaway.”

To listen to the full podcast on the future of SDLT and its effects on the housing market going forward click on the link above.