More than a third of homeowners and prospective buyers want the government to review council tax bands and provide greater support with payments, according to research from specialist lender Together.
The lender’s survey found that 37% of respondents identified council tax reform and affordability measures as priorities for restoring confidence in the UK housing market ahead of the Budget.
Uncertainty over stamp duty was another significant concern, with 33% calling for the government to clarify its longer-term intentions for the tax, including whether reforms are planned and when they might be introduced.
Although the prime minister has ruled out changes to stamp duty in the forthcoming Budget, the research suggests that buyers and homeowners remain concerned about its impact on housing market activity.
More than a quarter (26%) of respondents want measures to encourage downsizing, potentially releasing larger properties for families seeking more space.
SUPPORT FOR HOUSEBUILDING
The survey also identified public support for measures intended to increase housing supply, particularly through investment in social housing and the redevelopment of existing sites.
Almost a third (32%) want councils and housing associations to receive sufficient funding to deliver social housing on a larger scale.
Meanwhile, 25% favour measures to release brownfield land for development and regenerate existing communities, while 23% believe the government should concentrate on removing obstacles that prevent homes with planning consent from being built.
A further 19% want the government to avoid measures that penalise or stigmatise property investment.
The findings come as the government prepares to provide further details of its proposed Your First Home scheme, which is intended to help eligible first-time buyers purchase new-build properties.
Under the proposals, buyers would be able to purchase with deposits of 2.5%, supported by a 20% government equity loan. The effect of the scheme on housing market activity will depend in part on take-up among eligible purchasers.
PROPERTY TAXES AND MARKET CONFIDENCE
Ryan Etchells, chief commercial officer at Together, said housing affordability should remain a priority as the government considers its wider fiscal position.
He said: “Ahead of a Budget in which the government looks to balance easing the cost of living with raising taxes to tackle its diminished fiscal headroom, there’s a danger that housing costs are overlooked to the public’s detriment.
“For many, Council Tax has outstripped both inflation and wage growth in recent years, and has become a difficult cost to bear in tandem with soaring mortgage costs.
“But our research shows that homeowners and aspiring homeowners not only desire a support on costs, but want to see action taken to ease pressures on the property market.
“Though immediate reform is not on the table, the public rightly identifies Stamp Duty as an obstacle to a more fluid property market in which downsizing is incentivised and families can move to homes more suited to their needs.
“The public’s understanding of the need for house building is also clear, with support for the delivery of large-scale social housing and the need to unlock for land for development and regenerate existing communities.
“Though the ‘Your First Home’ scheme may have some impact on the property market, its impact may be minimal if uptake is low.
“Any other policy decisions – or indecisions – which affect the property market could have a very significant impact on personal finances, and it’s crucial that it is not overlooked on Budget day.”
