Calls for accelerated house-building, first-time buyer support, stamp duty reform and greater green incentives

Ahead of July’s general election, four key property concerns have been voiced by property experts, estate agents, homeowners and renters.

Property portal Rightmove says its research has highlighted accelerated house-building, first-time buyer support, stamp duty reform and greater green incentives as priorities for voters.

A key ask of the next government is that they prioritise long-term solutions over short-term policies that only help certain people, or certain areas of the UK, at set moments in time.

The undersupply of housing in the UK has contributed to ever-increasing house prices and rents, with national average asking prices of homes now 22 per cent higher than five years ago, at £375,131, and national advertised rents up by 40 per cent, at £1,479 pcm.

Over the past five years, the gap between supply and demand has widened.

Demand is measured by looking at the number of people sending enquiries about homes for sale or to rent on Rightmove.

Since April 2019, buyer demand has risen by 15 per cent, while supply has decreased by six per cent.

In the rental market, demand has increased by 32 per cent, with supply reducing by 38 per cent.

Rightmove’s property expert Tim Bannister says: “One way that could help to accelerate house-building is to streamline the planning process, which is highly complex and challenging.

“If the government can create smoother processes, working closely with all key stakeholders, it could transform the delivery of new homes and produce more affordable housing.

“Not only could this help first-time buyers, it could also open up a big opportunity to help downsizers move to greener homes with lower running costs.”

More support for first-time buyers was the most requested change among renters from the next government.

Stretched affordability, especially with elevated mortgage rates in recent years, has made it challenging for people trying to juggle paying rent, saving for a deposit, and earning enough to pass affordability tests.

This is especially true for people trying to buy on their own.

Rightmove’s mortgages expert Matt Smith says: “There’s an opportunity to unlock greater affordability in a responsible way, which could help more first-time buyers get on the ladder.

“First-time buyers are already taking out longer mortgage terms and lender innovation has included the introduction of longer-term fixed rates that are likely to be part of the solution as they help by ensuring certainty of payments.

“Various mortgage schemes have played their part and supported a number of people, and we know from our study that people would like to see new schemes introduced, but we think longer-term solutions would be more effective than short-term schemes.

“Either way, it’s most likely that regulatory change is needed, so it’s critical that the government works with regulators and lenders from day one on any mortgage solutions, to ensure buy-in and take-up, which will in turn create more options for first-time buyers.”

The biggest change homeowners and agents would like the government to introduce is a reform of the stamp duty system.

The barrier that stamp duty presents, especially in higher priced areas, could be preventing thousands of people from moving.

If a new stamp duty system took into account regional property prices, or helped encourage more people to downsize, it could help movement in the market.

Green incentives are the third most requested change of the next government from home-owners.

The focus on helping people make their homes greener has fallen off the government’s agenda in recent years.

Homeowners also need better and easier access to schemes that enable them to make green improvements, with the recognition that each home requires different improvements, and that currently the upfront costs are a big barrier to change.

A simplified home-buying process was the second most requested change among homeowners taking part in the study.

It is currently taking over seven months from when someone puts their home up for sale until they move.

This painfully long timeframe, with no recent improvement, means home-movers have to navigate a complex and frustrating process.

Rightmove’s legal expert David Cox says: “It’s vital that the next government works closely with the property industry to come up with standardised solutions to help speed up the home-moving process, to benefit both home-movers and agents.

Digitisation is key, and there has been innovation in this space, but it also needs a solid focus from the next government.

“A well-developed and adopted solution has the potential to not only accelerate the home-buying process, but also encourages a less stressful, better understood and more seamless transaction for home-movers.”