"Delivering more homes depends on simplifying the planning system and increasing infrastructure investment, but the housebuilding sector – particularly SME developers – also needs certainty and targeted support to scale up delivery"
- Danielle Soto - Aldermore
Ahead of Wednesday's Budget, Aldermore is calling for an 18-month Stamp Duty holiday for buyers of new homes under £500,000 to stimulate sales and investment. The lender is also urging the Government to reinstate Help to Build, offering a government-backed equity contribution of 20% when buyers contribute 5% themselves.
Aldermore’s First Time Buyer Index, based on a survey of 2,000 prospective first-time buyers, highlights strong demand for policy support. More than two-thirds (68%) said the Government and mortgage industry must be more creative with incentives. Nearly seven in 10 (69%) backed reintroducing Help to Buy, over a third (35%) wanted increased support for affordable housing supply, and about a quarter (24%) called for Stamp Duty relief or higher thresholds.
“This week’s Budget is a critical juncture for the Chancellor to help unlock growth,” said Danielle Soto, managing director for savings and business finance at Aldermore. “Delivering more homes depends on simplifying the planning system and increasing infrastructure investment, but the housebuilding sector – particularly SME developers – also needs certainty and targeted support to scale up delivery."
"While the Government has striven to reach its target of building 300,000 homes a year, the data on completed homes to date demonstrates that this ambition is currently out of reach. Therefore, we must search for more creative and far-reaching solutions. The housebuilding sector, and SME developers who find themselves disproportionately impacted by red tape and complexity in particular, requires more certainty in order to achieve this.”
“First-time buyers are equally in need of greater support,” Soto continued. “More than two-thirds (68%) say the Government and mortgage industry must be more creative with incentives, and nearly seven in 10 (69%) support reintroducing the Help to Buy scheme. Nearly a quarter (24%) want Stamp Duty relief or higher thresholds. That’s why we’re calling for an 18-month Stamp Duty holiday for buyers of new homes under £500,000 – to stimulate sales, support first-time buyers, and help smaller developers maintain cash flow."
"We’re also calling on the Government to reinstate Help to Build with a government-backed equity contribution of 20% when buyers contribute 5%. This would enable smaller builders to re-enter the market and accelerate the delivery of new homes, especially in regional areas where major housebuilders are less active. While there is no single solution, these measures would provide meaningful help to both SME housebuilders and first-time buyers.”
