Leading estate agent calls for a stamp duty cut to revive the property market and prevent a collapse after lockdown
Urgent stimulus from the Government is needed to ward off a collapse in the UK’s housing market, experts have warned.
Lockdown will result in the loss of 526,000 home sales this year if there is no intervention – starving the economy of at least £14.3 billion in DIY and renovation spending, stamp duty and VAT, according to research by the property consultancy Knight Frank.
It wants the Government to implement a stamp duty holiday and expand the Help To Buy scheme.
Warning: Lockdown will result in the loss of 526,000 home sales this year if there is no intervention
Without this, it estimates there will be 38 per cent fewer home sales this year than in 2019, even if the lockdown ends in May, while 350,000 fewer mortgages would be approved by banks.
Tom Bill, head of London residential research at Knight Frank, said: ‘Moving house has a clear multiplier effect for the economy.
Different sized businesses in all areas of the economy feel these benefits, which is something the Government will take into account when drawing up its post-lockdown stimulus plan.’
How bad will the recession be – and what will the recovery look like?
The economic destruction of the coronavirus crash was laid bare in a report from the Office of Budget Responsibility this week.
But although the OBR forecast an astonishing 35% slump in UK output in the second quarter of this year – with a three-month lockdown – the other side of its chart showed a substantial bounce-back.
What will we need to do for that recovery to happen – and what will it look like?
On this podcast, Simon Lambert and Georgie Frost look at the reports on the economic impact of Covid-19 and at the potential bounce back, along with which sectors and businesses could seize the day when it comes.
Press play above or listen (and please subscribe if you like the podcast) at Apple Podcasts, Acast, Spotify and Audioboom or visit our This is Money Podcast page.
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