Grenville Turner, group chief executive of Countrywide, said: “A recovery of the housing market is fundamental to economic recovery.
“According to Government figures even in its current crisis state housing supply accounted for around 3% of UK GDP and provides between 1 and 1.25m jobs in the UK.
“Furthermore, it is estimated that twice the number of jobs are created in the supply chain, e.g. service jobs and retail income.
“The potential economic benefits in a stronger housing market demonstrate the importance of implementing practical solutions now.
“Current transaction volumes are simply not sustainable. Based on current levels of activity, the average home owner moves house once every 25 years as opposed to once in every 12 years which has wider implications for society, the labour market, and the UK economy.
“The valuable economic contribution that the property market makes is being overlooked and there is a risk that current Government policy will be ineffective or, even worse, cause unnecessary volatility.
“Some of the critical factors hindering the UK housing market are mortgage accessibility, availability of quality housing stock and lack of investment in the buy-to-let sector to meet the needs of the growing private rental sector.
“Whilst the Government has introduced some measures to increase activity in the housing market, they must have a clear strategy to achieve a balance of demand and supply through tax relief and incentives with the aim being to reduce volatility in the house market.
Tax relief for first-time buyers
“Offer first-time buyers mortgage interest relief at source (MIRAS) for mortgages up to £169,707 (average house price).
Appropriate regulation, targeting only first-time buyers and capping the amount could ensure that it assists those who need it most and eliminate any opportunities for people to take advantage of it.
Set mortgage lending targets
“Mortgage affordability is the major factor holding back the first-time buyer market.
“Just as the FSA has the power to enforce SME lending targets for all lenders, not just state-backed lenders, why can’t they set mortgage lending targets for all lenders?
Incentives for landlords to invest in the lettings market
“With an average of five tenants competing for each available rental property, investment in the buy-to-let sector is essential and buy-to-let investors should be treated as businesses in order to take advantage of capital gains tax relief that is currently available to small businesses.
“These measures need to work alongside facilitating professional investors getting into the sector.
“Introduce additional tax breaks for multiple tenancy units. For example, if a landlord buys a property and instructs a Local Authority or Housing Association (or an approved agent representing them), they should get stamp duty and/or tax relief on the interest accrued for any loans taken out to finance the purchase.
Incentives for development projects
“Introduce a cap on the level of affordable housing. Setting an upper limit of 25% for affordable housing per development again will redress the balance, help developer viability and produce more marketable schemes.
“Suspending or postponing CIL payments, delaying proposed rises in planning application fees or introducing a tax allowance for these costs would allow developers a tax relief, similar to a ‘capital allowance’.
“This would allow developers, builders and landowners take development projects forward while significantly incentivising the market and helping with land values, if only implemented as a ‘payment holiday’ during these fragile economic times.”
Coutrywide is calling on the government to set mortgage lending targets, introduce mortgage relief at source for first- time buyers, give landlords tax breaks and offer incentives for development projects.
Grenville Turner, group chief executive of Countrywide, said: “A recovery of the housing market is fundamental to economic recovery.
“According to Government figures even in its current crisis state housing supply accounted for around 3% of UK GDP and provides between 1 and 1.25m jobs in the UK.
“Furthermore, it is estimated that twice the number of jobs are created in the supply chain, e.g. service jobs and retail income.
“The potential economic benefits in a stronger housing market demonstrate the importance of implementing practical solutions now.
“Current transaction volumes are simply not sustainable. Based on current levels of activity, the average home owner moves house once every 25 years as opposed to once in every 12 years which has wider implications for society, the labour market, and the UK economy.
“The valuable economic contribution that the property market makes is being overlooked and there is a risk that current Government policy will be ineffective or, even worse, cause unnecessary volatility.
“Some of the critical factors hindering the UK housing market are mortgage accessibility, availability of quality housing stock and lack of investment in the buy-to-let sector to meet the needs of the growing private rental sector.
“Whilst the Government has introduced some measures to increase activity in the housing market, they must have a clear strategy to achieve a balance of demand and supply through tax relief and incentives with the aim being to reduce volatility in the house market.
Tax relief for first-time buyers
“Offer first-time buyers mortgage interest relief at source (MIRAS) for mortgages up to £169,707 (average house price).
Appropriate regulation, targeting only first-time buyers and capping the amount could ensure that it assists those who need it most and eliminate any opportunities for people to take advantage of it.
Set mortgage lending targets
“Mortgage affordability is the major factor holding back the first-time buyer market.
“Just as the FSA has the power to enforce SME lending targets for all lenders, not just state-backed lenders, why can’t they set mortgage lending targets for all lenders?
Incentives for landlords to invest in the lettings market
“With an average of five tenants competing for each available rental property, investment in the buy-to-let sector is essential and buy-to-let investors should be treated as businesses in order to take advantage of capital gains tax relief that is currently available to small businesses.
“These measures need to work alongside facilitating professional investors getting into the sector.
“Introduce additional tax breaks for multiple tenancy units. For example, if a landlord buys a property and instructs a Local Authority or Housing Association (or an approved agent representing them), they should get stamp duty and/or tax relief on the interest accrued for any loans taken out to finance the purchase.
Incentives for development projects
“Introduce a cap on the level of affordable housing. Setting an upper limit of 25% for affordable housing per development again will redress the balance, help developer viability and produce more marketable schemes.
“Suspending or postponing CIL payments, delaying proposed rises in planning application fees or introducing a tax allowance for these costs would allow developers a tax relief, similar to a ‘capital allowance’.
“This would allow developers, builders and landowners take development projects forward while significantly incentivising the market and helping with land values, if only implemented as a ‘payment holiday’ during these fragile economic times.”
Coutrywide is calling on the government to set mortgage lending targets, introduce mortgage relief at source for first- time buyers, give landlords tax breaks and offer incentives for development projects.
Grenville Turner, group chief executive of Countrywide, said: “A recovery of the housing market is fundamental to economic recovery.
“According to Government figures even in its current crisis state housing supply accounted for around 3% of UK GDP and provides between 1 and 1.25m jobs in the UK.
“Furthermore, it is estimated that twice the number of jobs are created in the supply chain, e.g. service jobs and retail income.
“The potential economic benefits in a stronger housing market demonstrate the importance of implementing practical solutions now.
“Current transaction volumes are simply not sustainable. Based on current levels of activity, the average home owner moves house once every 25 years as opposed to once in every 12 years which has wider implications for society, the labour market, and the UK economy.
“The valuable economic contribution that the property market makes is being overlooked and there is a risk that current Government policy will be ineffective or, even worse, cause unnecessary volatility.
“Some of the critical factors hindering the UK housing market are mortgage accessibility, availability of quality housing stock and lack of investment in the buy-to-let sector to meet the needs of the growing private rental sector.
“Whilst the Government has introduced some measures to increase activity in the housing market, they must have a clear strategy to achieve a balance of demand and supply through tax relief and incentives with the aim being to reduce volatility in the house market.
Tax relief for first-time buyers
“Offer first-time buyers mortgage interest relief at source (MIRAS) for mortgages up to £169,707 (average house price).
Appropriate regulation, targeting only first-time buyers and capping the amount could ensure that it assists those who need it most and eliminate any opportunities for people to take advantage of it.
Set mortgage lending targets
“Mortgage affordability is the major factor holding back the first-time buyer market.
“Just as the FSA has the power to enforce SME lending targets for all lenders, not just state-backed lenders, why can’t they set mortgage lending targets for all lenders?
Incentives for landlords to invest in the lettings market
“With an average of five tenants competing for each available rental property, investment in the buy-to-let sector is essential and buy-to-let investors should be treated as businesses in order to take advantage of capital gains tax relief that is currently available to small businesses.
“These measures need to work alongside facilitating professional investors getting into the sector.
“Introduce additional tax breaks for multiple tenancy units. For example, if a landlord buys a property and instructs a Local Authority or Housing Association (or an approved agent representing them), they should get stamp duty and/or tax relief on the interest accrued for any loans taken out to finance the purchase.
Incentives for development projects
“Introduce a cap on the level of affordable housing. Setting an upper limit of 25% for affordable housing per development again will redress the balance, help developer viability and produce more marketable schemes.
“Suspending or postponing CIL payments, delaying proposed rises in planning application fees or introducing a tax allowance for these costs would allow developers a tax relief, similar to a ‘capital allowance’.
“This would allow developers, builders and landowners take development projects forward while significantly incentivising the market and helping with land values, if only implemented as a ‘payment holiday’ during these fragile economic times.”
