Trade body UK Finance has called on Labour to make it so first-time buyers don’t pay stamp duty on the first £425,000 of purchases permanently.
As it stands the minimum rate of stamp duty is set to revert back to £250,000 at the end of March 2025, while Labour didn’t mention it in its party manifesto.
Relief on the first £425,000 happens providing first-time buyers purchase a home worth less than £625,000, with them paying 5% on the £200,000.
Charles Roe, director of mortgages at UK Finance, said: “Our new report sets out a range of recommendations to complement the government’s plans.
“These include making the planning process simpler, removing some of the barriers first-time buyers face and ensuring we’re meeting the housing needs of our ageing population.
“Improving standards in the private rental sector and supporting the social and affordable rental sectors will also be key.”
The trade body also urged the government to focus on building more homes for older buyers, in a bid to encourage downsizing.
Nick Sanderson, chief executive of Audley Group, said: “A stamp duty cut for downsizers should stimulate movement at the top of the market, encouraging people to move out of large family homes, but it’s important to remember that a financial incentive is just one part of the puzzle.
“And there is a significant issue to resolve before that jigsaw is completed. There is a chronic lack of age-specific housing in the UK. If we aren’t giving people the properties to move into, in the right locations, the stimulus can’t achieve its full potential.
In terms of housebuilding, UK Finance called for a reformation of the planning system to make it simpler, with shorter development timescales and more consistency in planning conditions.
Meanwhile the Local Housing Allowance (housing benefit) should be updated annually to keep up with rising rents.
The government should also create a sponsored registration system for owners of rental properties, to both ease the compliance burden on landlords and help local authorities, mortgage lenders and tenants identify rogue landlords or sub-standard properties.
Providing tax incentives could also encourage landlords to make green upgrades to their properties.
Labour is set to make policy announcements when delivering the Autumn Budget on 30 October.