The Royal Institute of Chartered Surveyors (RICS) and the National Federation of Builders (NFB) have called for a stamp duty holiday once the lockdown ends.
RICS members are expecting house prices to fall over the next 12 months – but the organisation said temporarily removing stamp duty would help quickly get the market running again.
Hew Edgar, RICS head of government relations, said: “RICS is not an organisation that would call for a stamp duty holiday on a whim.
“As we start to emerge from this crisis, however, it is likely that the finances of potential homebuyers will be under strain, and the burden of stamp duty could put buyers off.
“For those who can afford to move they may lack confidence in the market, adding to the slow down.
“A stamp duty holiday could be one of the ways to reactivate the housing market quickly as a short term measure.”
Afterwards the NFB backed the call.
Richard Beresford, chief executive of the NFB, said: “A temporary stamp duty holiday would encourage new build sales and release some much needed cashflow back to our struggling housebuilders.
“It would also ensure vital businesses, such as surveyors and conveyancers, are able to continue operating in these difficult times. We support it.”
The National Federation of Builders also backed are campaigns to defer planning contributions and council tax on vacant new builds, as well as extend planning permissions by 12 months.
Rico Wojtulewicz, head of housing and planning policy at the House Builders Association (HBA), the housebuilding division of the NFB, said: “Housebuilders, many of whom are struggling to get lending from the government CBILS scheme, are still expected to pay bills, their staff and the supply chain but with reduced or no revenues.
“A temporary stamp duty holiday is another immediately deliverable solution that the government should pursue.
“Any delay in increasing support to our industry will see businesses go to the wall and once one goes, the domino effect will be striking.”
This post has originally been featured in Property Wire.