Coronavirus: Knight Frank and Rightmove call for stamp duty holiday to reignite market
Estate agent Knight Frank and property platform Rightmove have both backed a stamp duty holiday as part of a package of measures to reignite the housing market after the coronavirus lockdown is lifted.
The companies have separately called for a stamp duty holiday to be among a range of measures designed to stimulate the market, which has stagnated during the pandemic
Earlier this month the Royal Institute of Chartered Surveyors also called for a stamp duty holiday as a “short term measure” .
Liam Bailey, Knight Frank global head of research said: “Despite the fact the government will forgo a significant amount of stamp duty revenue in 2020, it seems clear there will need to be a stamp duty holiday to actually get the market moving once the lockdown is lifted.
“But this move alone will not be enough – there will need to be moves across a wider number of areas including an extension to Help to Buy to support first time buyers and support activity across all price bands.”
Knight Frank has urged the government to extend Help to Buy and review the conveyancing process.
The estate agent also said there should be more flexibility around planning obligations, such as section 106 and Community Infrastructure Levy payments. The payments are usually paid up front however, Knight Frank has recommended that staggered payments should be considered.
Meanwhile, Rightmove said lenders should not rush to repossess homes after missed payments, which could lead to forced sales.
“Much will depend on future trends in employment rates, as most buyers need appropriate employment to get a mortgage or to keep up repayments on their existing mortgage,” it said.