Despite calls for an extension, the stamp duty holiday alone will not address the problems facing the market, according to Audley Group.
Although industry voices have been calling for Chancellor Rishi Sunak to extend the stamp duty holiday, due to end on 31 March, this alone will not address the long-term problems facing the housing market, according to Audley Group.
Nick Sanderson, CEO of Audley Group, said: “The stamp duty holiday last year was put in place to inject new life into the property market after it stood still in the early days of the pandemic.
"With current rumours of an extension to the programme rippling through the industry it’s important to reflect on the real value it brings.
"Firstly, it is by no means a long term cure for the faltering market.
"However, it did give transaction levels a much needed boost and in turn generated more income for the Treasury as the stagnant market moved.
"This freed up homes allowing families to upsize and those living in homes too big for them to downsize."
Sanderson said that while an incentive has been helpful in the short-term, the housing crisis will not go away, particularly when it comes to the chronic shortage of specialist housing for older people in the UK.
He said: "It’s all well and good giving people a financial incentive to move, but if the properties aren’t available, the numbers won’t ever add up in the long term.
"We need to see the government giving the green light to the development of more specialist retirement housing so older people looking to move can actually find properties which suit their current needs.”
