The Stamp Duty reduction is positive but won’t have the impact it did during the pandemic.
When it comes to Stamp Duty relief the help for first-time buyers is positive, but it is very disappointing there was no specific relief for downsizers. Encouraging more people to downsize would free up more family-sized homes.
Also, this Stamp Duty reduction won’t work as well as previous reductions made during the pandemic. In 2020 and 2021 people had savings and an incentive to move, given we all had to spend more time at home. Today, trying to stimulate the housing market is going to run head-first into inflation and higher interest rates. In addition, what we see in the market currently is that developers are still optimistic about future sales: they don’t need another incentive.
Reforming and streamlining the planning system sounds like a good idea but the trouble is the government has said it has this ambition at many previous budgets and nothing ever happens. So, the industry will believe this when it sees it.
Finally, the industry will always applaud the promise of more work, so the goal to speed up a series of infrastructure project will boost confidence.
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